ARK Invest Becomes First Asset Manager to Reveal Fees for Bitcoin ETF

[RSRS]

When ARK Invest, the New York-based investment management firm helmed by Cathie Wood, filed for a Bitcoin ETF last week, it joined the ranks of several other U.S. firms that hope to convince the Security and Exchange Commission (SEC) to allow the launch of an exchange-traded fund tracking the price of Bitcoin.

However, there’s one thing about ARK Invest's application that stands out among the increasingly crowded field; according to a report by the Financial Times, the firm is the first to reveal an actual fee for its proposed Bitcoin ETF offering.

According to a disclosure form filed with the SEC, ARK Invest has partnered with Swiss-based ETF provider 21Shares AG to offer the ARK 21Shares Bitcoin ETF, which–if approved–would trade on Cboe's BZX Exchange under the ticker symbol ARKB.

In addition, the filing indicates a planned fee of 0.95% payable to 21Shares, with the latter to use this money to cover operating expenses.

Neena Mishra, director of ETF research at Zacks Investment Research, told the FT that since Ark’s proposed Bitcoin ETF already has a big market, this means that competitors “will want to match or undercut its expense ratio, kicking off a fee war in the space.”

Cathie Wood's ARK Invest Joins the Bitcoin ETF Race
Both Ark’s Innovation and Next Generation Internet ETFs hold shares of crypto exchange Coinbase, which has been picked up to provide custodial services for the proposed Bitcoin ETF. According to Mishra, if the offering is approved, that would mean that both funds will be its major shareholders, with investors getting exposure to the product free of charge.

Sourch