Spot Bitcoin ETF Applications Now Completed On Form S-1

Key Points:

• BlackRock, Ark/21Shares, and others file amended spot Bitcoin ETF applications for Bitcoin ETFs with the SEC.
• Leading contenders introduce competitive fee structures, with some offering zero fees initially, indicating heightened competition and innovation in the crypto investment landscape.

Prominent financial entities, including BlackRock, Ark/21Shares, Fidelity, Invesco, Galaxy Digital, WisdomTree, Valkyrie, iShares, and VanEck, have recently filed amended forms for their exchange-traded fund (ETF) applications directly investing in Bitcoin with the United States Securities and Exchange Commission (SEC).

Financial Giants Vie for Bitcoin ETF Approval With Updated Spot Bitcoin ETF Applications

The filings aim to seek approval for spot Bitcoin ETFs, reflecting a growing interest in bringing cryptocurrency investment products to mainstream investors.

Sources indicate that the SEC has set a deadline of January 10 to make a decision on at least one of the spot Bitcoin ETF applications. There is speculation among crypto insiders that the regulator might use this date to announce multiple decisions simultaneously, potentially paving the way for a new wave of cryptocurrency ETFs.

Among the notable contenders, Ark/21Shares has taken a bold step by offering zero fees for the first six months, or until the fund accumulates $1 billion in assets. Subsequently, the fee will be 0.25%, making it one of the most competitive rates in the market. BlackRock follows closely, with fees as low as 0.2% for the initial 12 months or until the fund reaches $5 billion in assets, after which it will adjust to 0.3%.

VanEck has proposed a fixed fee of 0.25%, tying for the lowest after the expiration of temporary fees for rival ETFs. Fidelity, Invesco, and Galaxy Digital have also outlined their fee structures, with Invesco/Galaxy even offering zero fees for the first six months or until the fund amasses $5 billion in assets.

Reports from Bloomberg suggest that the SEC is gearing up to vote on the exchanges’ filings, the 19b-4s, in the coming days. The regulator may then decide whether to take action on the issuers’ spot Bitcoin ETF applications, the S-1s, around the same time.