Applicants submitted their final S-1 amendments to their proposed spot Bitcoin ETF approval, expected starting Wednesday.
Several prospective issuers of spot BTC exchange-traded funds have revised and finalized their S-1 forms, the final step in their search for a spot Bitcoin ETF.
According to the report, the latest revisions came from applicants including Fidelity Investments, VanEck, Franklin Templeton, Pando Asset AG, Invesco, Ark Invest/21Shares, WisdomTree and BlackRock. The submission will include details of the market maker, including applicable fees.
For example, BlackRock’s sponsor fee is 0.2% for the first year of approval or until the ETF accumulates $5 billion worth of assets. After that, the fee increases slightly to 0.3%. at post“It’s a lot cheaper than I expected,” explained Bloomberg ETF analyst Eric Balchunas.
Ark Invest/21 Shares also reduced its ETF fees from 0.8% to 0.25%. Interestingly, Ark Invest/21 Shares submitted its own fees 20 minutes after BlackRock submitted its fees. According to Balchunas. Competition among promising issuers highlighted, Balchunas Posted:
“Seeing ARK go from 80bps to 25bps in one go is breathtaking. The fee wars are fierce, but that’s on another level.”
Balchunas also suggested that Ark Invest/21 Shares had no choice because “BlackRock at 30bps is (a) potential immediate destroyer of someone much higher.”
With the recent announcement, applicants and the cryptocurrency community are now awaiting a final decision from the U.S. Securities and Exchange Commission (SEC). X post Nate Geraci, president of ETFStore, an investment advisory and wealth management firm, noted that SEC staff “had no additional feedback” on recent filings by several companies. Balchunas responded “It’s basically done,” he said, adding that all that remains is formal approval from the SEC for a possible launch on January 11.
Industry Remains Strong Following Spot Bitcoin ETF S-1 Revision
Sentiment in the cryptocurrency sector regarding a potential ETF approval is generally optimistic. The probability of being rejected seems low. Although everyone knows that the amendments do not guarantee approval, the forecasts are mainly optimistic. The SEC has a 90% chance of approving the ETF by Jan. 10, according to Bloomberg Intelligence analysts.
Some applicants have already begun promotions in anticipation of SEC approval. Hashdex, one of the prospective issuers, recently started advertising Bitcoin. Although not directly tied to the spot Bitcoin ETF, the ad says, “Disruptive innovation takes time to understand. The era of Bitcoin has arrived.” The ad shows an interview in which a man highlights his skepticism about using computers for everyday tasks, and suggests that simple analog records may be faster and more efficient than digital versions. The idea is that using computers is more efficient, but people didn’t agree or understand it at first, just like with Bitcoin. Before Hashdex, Bitwise also launched a Bitcoin ad featuring actor Jonathan Goldsmith.
Interestingly, VanEck isn’t fazed by advertising and promotions. When asked about advertising, the company suggested that it prefers to purchase more Bitcoin than channel funds for expensive marketing and advertising.
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