Franklin Templeton Bitcoin ETF Fees Cut By 10 Basis Points

Key Points:

• Franklin Templeton reduced Franklin Templeton Bitcoin ETF fee to 0.19%, making it the most economical choice among recent U.S. launches.
• Positions Franklin Templeton as a strong rival against Grayscale, BlackRock, and ARK 21 Shares in the Bitcoin ETF market.

Franklin Templeton has emerged as a formidable player in the competitive Bitcoin exchange-traded fund (ETF) market by slashing the expense ratio of the Franklin Templeton Bitcoin ETF, making it the most affordable option among the newly launched investment products on U.S. exchanges.

Franklin Templeton Bitcoin ETF Dominates Market with Competitive Fee Reduction

In a filing with the U.S. Securities and Exchange Commission (SEC) on Friday, Franklin Templeton announced a reduction in the expense ratio of the Franklin Templeton Bitcoin ETF (EZBC) from 0.29% to 0.19%.

This move positions the fund as the lowest-cost option, toppling Bitwise’s 0.2% fee. The fee cut includes a noteworthy initiative, as from January 12 to August 2 of this year, zero charges will apply to the ETF for the first $10 billion of the fund’s assets.

This strategic fee reduction places Franklin Templeton Bitcoin ETF in direct competition with major players like Grayscale, BlackRock, and ARK 21Shares. The battle for market share intensified as various providers, including Bitwise, adjusted their fees in anticipation of the highly competitive market.

Previously, Bitwise held the title for the lowest fee at 0.20%, applicable after the initial six-month waiver. Other key players like ARK 21Shares, Fidelity, and VanEck presented their own fee structures, with Grayscale standing with the highest sponsor fee at 1.5%, down from the initially proposed 2%.

The launch of Spot Bitcoin ETFs on Wall Street witnessed remarkable activity on the first day, with Grayscale leading the pack. A total of 11 Spot Bitcoin ETFs, featuring offerings from major investment players, recorded over $4.6 billion in trading volumes during their grand debut on Thursday, January 11.