Several issuers of Bitcoin ETFs file amendments, including adjustments to fees.
BTC Surges Above $45,000 as Firms File Amended Spot Bitcoin ETF Forms
Bitcoin (BTC) broke through the $45,000 mark as several firms, including BlackRock, Grayscale, ARK 21Shares, and others, submitted updated forms for spot Bitcoin ETFs ahead of the first approval deadline.
As of 10 a.m. ET on January 8, a total of 10 spot Bitcoin ETF issuers had filed amended S-1 and S-3 forms with the United States Securities and Exchange Commission (SEC) in a final effort to gain approval for traditional financial funds that track the price of spot Bitcoin, the largest cryptocurrency.
In their filings with the SEC, Valkyria, Wisdomtree, Invesco Galaxy, BlackRock, ARK 21Shares, VanEck, Fidelity, Bitwise, and Franklin Templeton included the fees for their spot Bitcoin ETFs. Grayscale also submitted a fresh registration of securities for its GBTC conversion.
These forms were submitted two days before the final deadline for a decision on the ARK 21Shares Bitcoin ETF, which is scheduled for January 10. Major exchanges such as Nasdaq and NYSE have already submitted updated 19-b4s after meeting with the SEC.
Among the filings, Bitwise offered the lowest fee at 0.24%, while Grayscale disclosed the highest fee at 1.5%. However, not all issuers had submitted amended forms at the time of the press. Some firms also plan to list their ETFs with fee waivers.
For example, BlackRock will list its iShares Bitcoin Trust with a 0.2% fee for the first 12 months. The fee waiver will apply to assets under management (AUM) up to $5 billion. ARK 21Shares and Bitwise also plan to charge zero fees for the first six months and up to $1 billion AUM.
Invesco Galaxy will offer the first six months with no fees and up to $5 billion AUM before reverting to a 0.59% fee.
The competition for spot Bitcoin ETF fees is heating up, with each issuer offering competitive rates to attract investors. However, Bloomberg analyst Eric Balchunas suggests that fund fees may not be the decisive factor in investors’ decision-making process.
Caitlin Long, founder and CEO of Custodia Bank, expressed concerns over the no-fee funds, citing skepticism around securities lending and its potential impact on investor safety.
In response to the news, Bitcoin saw a slight increase in its market price, rising by under 2% to surpass the $45,000 mark after experiencing a 10% drop last week. Opinions vary regarding the impact of a spot Bitcoin ETF on Bitcoin’s price, with some believing that the news has already been priced in, while others predict a significant rally towards its previous all-time high of $69,000.
Robert Quartly-Janeiro, chief strategy officer at crypto exchange Bitrue, shared two possible scenarios for price movements if the SEC approves spot Bitcoin ETFs. He also emphasized that the increase in institutional adoption should drive the long-term price of BTC up.
This latest development marks the final hurdle in the journey towards the approval of a spot Bitcoin ETF, according to Quartly-Janeiro.
