The Bitcoin (BTC-USD) exchange-traded fund (ETF) might be one of, if not the, biggest developments in cryptocurrency in quite some time. Now, reports are coming out about upcoming fees for some potential cryptocurrency ETFs. The market is taking this news fairly well, and one of the biggest potential new crypto ETFs at BlackRock (NYSE:BLK) is set to offer a comparative bargain. That was enough to send BlackRock up fractionally in Monday afternoon’s trading.
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BlackRock revealed that its ETF will ultimately—once it’s launched—charge 0.3% of the net asset value involved. That’s significantly lower than some other proposals and gives BlackRock a slight edge in the field. But BlackRock likely won’t be alone in this market, even if it’s shaping up to be the value provider. Both Ark 21Shares and the VanEck Bitcoin ETF are planning to apply an annualized fee of 0.25% to the fund’s total holdings. Others, like the Valkyrie Bitcoin ETF and the Fidelity Wise Origin Bitcoin Fund, are set to charge a 0.8% annual rate and a 0.39% annual rate, respectively.
The Last Hurdle is (Mostly) Broken
In the race to establish Bitcoin ETFs, one major hurdle has stood in the way: the Securities and Exchange Commission (SEC) in the United States. But this watchdog’s teeth have largely been pulled on the matter recently by the courts, who have forced it to pull back. Now, the SEC is left with little more than popguns in its arsenal, releasing a warning about “FOMO (fear of missing out) crypto investing” to “…warn..retail investors of the risks associated with digital assets….” And word from former SEC chairman Jay Clayton makes it clear: “… there’s nothing left to decide.” The die is cast, no matter what the SEC thinks right now.
Is BlackRock a Good Investment?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BLK stock based on 12 Buys and three Holds assigned in the past three months, as indicated by the graphic below. After a 55.86% rally in its share price over the past year, the average BLK price target of $816.47 per share implies 3.83% upside potential.
