Myriad institutions have reduced the Bitcoin ETF fee to less than 0.5-percent. This is going to bring heavy pressure on centralized cryptocurrency exchanges which also charge a fee of 0.5 percent.
Just think – why would any large trader or institution risk their money on a centralized cryptocurrency exchange when they can simply trade Bitcoin using an insured ETF instead?
That said, ETFs would not trade 24/7, unlike regular crypto market that is up all the time. That said, institutions would be able to trade the ETF and hedge weekend risk from time to time elsewhere if required. The weekend reversion to the close trade is going to be lit. That said, we have been literally trading a 2% range and open at CME for the past 2 years.
Here are fees of various institutions.
BlackRock Bitcoin ETF fee 0.3%
VanEck Bitcoin ETF fee 0.25%
WisdomTree Bitcoin ETF fee 0.5%
Is the Bitcoin ETF going to be sell-the-news event? Well, we will find that out soon. I don’t see any potential change. For the simple fact you dont hold any Bitcoin if you gain exposure to an ETF? While during a bullrun we see bitcoin buying and outflow from centralized cryptocurrency exchanges.