After the launch of bitcoin ETF’s the total market of crypto ETF has changed a lot. After January 2024 the crypto prices and its market value is rising every day. Due to this increase in price there are many players who are investing in the shares of cryptocurrency hence the fees are also dropping by a very significant amount.
Crypto ETF
A giant pool takes the place of cryptocurrencies like Ethereum and bitcoin. In that pole investors sell their shares and track the value of their cryptocurrencies. This is called a crypto ETF. The investors do not buy crypto directly in these pools instead a trade happens on the stock exchanges and after that the amount is added to the individual accounts or retirement accounts.
There are two main categories in which this ATF funding happens: one is spot ATF’s and the other is Future based ETFs. While the spot ETFs are in charge of the cryptocurrency and the future based ETF is in charge of the derivatives and contracts of the crypto.
While the ETF operates it gets some expenses on the account. To cover these expenses a percentage of assets and the funds are taken and it is charged as an ETF fee. This amount of fees is becoming less and less ever since the bitcoin ETF came into the market at the time of January 2024.
After initiating the trading the fees were going within 0.20% and 1.50%. And there were some providers who were charging 0.25%.
When you look at this competition, you get to see that there are many developments that are happening in the cryptocurrency market. There were many Wall Street companies that were competing for the investment and their dollars. So they can grow their space at the crypto ETFs. Many major asset managers see the potential in the crypto ETF and they rush immediately to buy these ETFs because they are important for the growth and Fidelity of their market.
These factors caught speed just when the crypto prices were going to rise and it was the time when the ETFs were about to launch. Hence bitcoin and Ethereum were also increasing with respect to their value. And fund managers are always prepared for these margins so they can attract the dollars and investment of consumers. Because consumers are only seeing the price, but the marketers and managers are looking at the big game.
This decrease in the ETF’s fees of crypto suggest that the market is going to shift and the investors who have access to their digital assets can convert their retirement accounts as soon as possible.