Multiple applicants for a spot Bitcoin exchange-traded fund (ETF) have submitted their final Form S-1 amendments to the United States Securities and Exchange Commission (SEC) on Monday, setting the stage for a potentially historic week in the cryptocurrency market. This includes companies like Bitwise, Valkyrie, WisdomTree, BlackRock, VanEck, Invesco, Galaxy, Grayscale, ARK Invest, and 21Shares, all of whom have filed their final S-1 amendments.
These submissions are made in anticipation of the widely expected approval date for the first spot Bitcoin ETFs in the United States on January 10. They provide crucial details such as fees and the identities of potential market makers. If the US SEC approves the spot Bitcoin ETF this week, it will allow the world’s largest asset managers to access Bitcoin.
The Competition among ETF Applicants
The Bitcoin ETF race has attracted over a dozen participants, ranging from crypto natives like Grayscale to traditional finance heavyweights like BlackRock. This intense competition has contributed to a broader surge in Bitcoin prices.
BlackRock and Bitwise are offering the lowest fees of 0.30% and 0.24% for their planned spot Bitcoin ETFs, respectively. This marks a significant reduction compared to some of their peers. Valkyrie Investments and Fidelity, for instance, are charging fees of 0.80% and 0.39%, respectively, for their proposed spot Bitcoin ETFs.
“Despite the ongoing fee war among applicants, the impact on competition may be limited,” says Bloomberg ETF analyst Eric Balchunas. He emphasizes the enduring focus of long-term investors on regular fees.
At the time of writing, Bitcoin is changing hands at just above $45,000, nearly 2% up in the last hour and 5% up in the last seven days.
