[SERIOUS] Bitcoin Spot ETF: False Hope for a Bull Run? BlackRock, Fidelity, Galaxy Digital and Other Companies have Proposed Charging up to 2.5% Management Fees for Bitcoin ETF!!

So, Nobody is going to talk about the hell of the management fees that these companies are charging for Bitcoin ETFs?

The management fee in an ETF is the fee charged by the ETF issuer to cover the costs of managing the fund. It is expressed as a percentage of the fund's assets under management (AUM). The average management fee for an ETF is 0.16%, but it can vary depending on the type of ETF and the fund issuer.

Proposed management fees for Bitcoin ETFs are all over 0.4%, which is way higher than the fees for traditional ETFs.

For example, the iShares Core S&P 500 ETF (IVV) by BlackRock has a management fee of 0.03%. That means that for every $100 you invest in IVV, you'll pay $0.03 in fees. But if you invest in the iShares Bitcoin Trust (BITI), you'll pay $0.40 in fees. That's a 133% difference!

I understand that there are some additional costs associated with managing a Bitcoin ETF, such as the need to hedge against Bitcoin's volatility. But these costs should not be that high. I think asset management companies are taking advantage of the fact that Bitcoin is a new and illiquid asset. They're charging high fees because they know that investors are willing to pay them.

Grayscale, Valkyrie, Fidelity, and others have not yet been approved by the SEC! to launch a spot Bitcoin ETF. However, they have both filed proposals with the SEC!, and the fees that they have proposed are publicly available.

Here is a comparison of the management fees for some Bitcoin ETFs:

The Decrypt Bitcoin ETF that was accepted in Europe has management fees of 1.5%.

• iShares Bitcoin Trust (BITI): 0.4%
• Fidelity Wise Origin Bitcoin Trust (FBTC): 0.4%
• Invesco Bitcoin Trust (BITW): 0.4%
• WisdomTree Bitcoin Trust (WBTC): 0.4%
• VanEck Bitcoin Trust (XBTF): 0.45%
• Grayscale Bitcoin Trust (GBTC): 2.5%
• SkyBridge Capital: 0.95%
• Bitwise Asset Management: 0.95%
• ETFMG: 0.75%
• Fundstrat Global Advisors: 1.5%
• New York Digital Investment Group: 0.75%
• Galaxy Digital: 0.75%

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Here are the management fees of some other ETFs offered by some big players:

• BlackRock:
  • iShares Core S&P 500 ETF (IVV): 0.03%
  • iShares Core MSCI Emerging Markets ETF (EEM): 0.18%
  • iShares Core Total US Bond Market ETF (AGG): 0.03%
• Fidelity:
  • Fidelity 500 Index Fund (FXAIX): 0.02%
  • Fidelity Total Bond Index Fund (FTHIX): 0.03%
  • Fidelity Total International Index Fund (FZILX): 0.07%
• Invesco:
  • Invesco QQQ Trust (QQQ): 0.20%
  • Invesco S&P 500 Value ETF (IVE): 0.05%
  • Invesco Russell 2000 ETF (IWM): 0.19%
• WisdomTree:
  • WisdomTree Emerging Markets Currency Hedged ETF (HEEM): 0.35%
  • WisdomTree Japan Hedged Equity ETF (DXJ): 0.65%
  • WisdomTree U.S. Total Market Dividend ETF (DTN): 0.15%
• VanEck:
  • VanEck Vectors Gold Miners ETF (GDX): 0.59%
  • VanEck Vectors Oil Services ETF (OIH): 0.65%
  • VanEck Vectors Semiconductor ETF (SMH): 0.45%

As you can see, the management fees for Bitcoin ETFs are significantly higher than the fees for traditional ETFs. Investors should carefully consider these fees before investing in a Bitcoin ETF.

It is possible that the SEC! will approve these proposals, and if they do, the fees that they have proposed will be the fees that investors will pay. However, it is also possible that the SEC! will not approve the proposals or that they will approve the proposals with different fees.

Overall, high fees could prevent Bitcoin ETFs from attracting many players and could also be a false hope for the start of a bull run.