[ad_1]
All spot Bitcoin exchange-traded fund (ETF) applicants have submitted their final Form S-1 amendments to the U.S. Securities and Exchange Commission (SEC). This is a pivotal moment, especially since deadline submission was set for 8:00 a.m. EST today, January 8th.
Leading the pack, Valkyrie submitted its final S-1 amendment well ahead of the speculated January 10 date, which many industry insiders believe could see the first approvals of spot Bitcoin ETFs in the United States. In the process, major players such as WisdomTree, BlackRock, VanEck, Invesco, Galaxy, Grayscale, ARK Invest, 21Shares, Bitwise, Franklin Templeton and Grayscale also completed their submissions.
However, Hashdex has not updated its S-1. New filings are the penultimate step before one-time Bitcoin ETF approvals. The latest is the SEC’s vote on 19b-4 filings in the coming days, specifically Wednesday.
Scott Johnsson, financial attorney at Davis Polk explained: “Best estimate schedule (not final): – Monday: “final” S-1/3 filing – Wednesday: 19b-4 approval orders issued after closing – Thursday : requests for acceleration from issuers – Friday: notice of entry into force filed by the SEC – Tuesday: start of negotiations »
Best estimate of timing (not final):
– Monday: “final” deposit S-1/3
– Wednesday: 19b-4 approval orders issued after closing
– Thursday: Requests for acceleration from issuers
– Friday: Notice of Effectiveness Filed with the SEC
– Tuesday: Start of exchanges–Scott Johnsson (@SGJohnsson) January 8, 2024
Others expect that spot Bitcoin ETFs could even begin trading as early as Thursday or Friday.
Fee war for Spot Bitcoin ETFs begins
The S-1 amendments are crucial because they disclose information about potential ETF fees. In an interesting turn of events, several filers have significantly reduced the trading fees of their potential Bitcoin ETF spot products. Initially, BlackRock led with the lowest fees. Katie Greifeld, anchor of The Close and ETF IQ on Bloomberg, Underlines:
BLACKROCK’S FEE is finally listed. The final fee is 30 basis points, BUT 20 basis points in the first 12 months or up to the first $5 billion in assets. This is the new low water mark.
However, Cathie Wood’s Ark Invest announced a fee cut shortly after. Ark’s latest S-1 shows a decline of 0.80% to 0.25%, and a special offer of 0% fees for a period of six months from the day of listing, for the first billion dollars of transactions. Eric Balchunas, analyst at Bloomberg, commented on this competitive landscape:
But wait, ARK just lowered its fees to 0.25% in an S-1 filed 20 minutes after BlackRock’s. I told you the fee war would break out even if they launched. And that’s without Vanguard in the mix. Condemn. (…) ARK going from 80 bps to 25 bps in one shot is breathtaking. The tariff wars are intense but this is another level. Even if they had to do it a little. BlackRock at 30 bps is a potential instant destroyer of anyone much higher.#
However, Ark was also undermined at the last minute. Bitwise submitted a fee of 0.24%. No fees are charged for the first six months or $1 billion in assets under management.
Notably, VanEck also disclosed a fee of just 0.25%, but without any special launch promotions, unlike BlackRock and Ark Invest. The top quartet is followed by Franklin Templeton (0.29%), Fidelity Wise Origin Bitcoin Trust (0.39%), WisdomTree Bitcoin Trust (0.50%), Invesco Galaxy Bitcoin ETF (0.59%), Valkyrie Bitcoin Fund (0.8%), Hashdex (0.90%) and Grayscale (1.5%).
Eric Balchunas explained that, historically, temporary fee waivers have not had a significant impact on investor decisions because advisors tend to focus on long-term fees. However, given the uniformity of services offered by these ETFs, he suggested that fee differences could play a bigger role this time. “Historically, this hasn’t changed things much (…) Advisors have focused on regular fees since they are long-term investors. That said, given that all of these ETFs all do the same thing, maybe everything else will be equally important, we’ll see,” he remarked.
Katie Greifeld commented: “I spoke on the low water mark too soon! Ark and 21 Shares grow 0.25% with NO FEES for the first six months or up to $1 billion in assets. These are very, very low numbers. (…) VanEck also comes in strong with a commission of 25 bp. For context, GLD – the largest physically-backed commodities ETF – charges 40 basis points.
Following this news, the price of Bitcoin reacted with a 2% jump, reaching $45,300.
Featured image from Shutterstock, chart from TradingView.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold investments and, naturally, investing involves risks. You are advised to carry out your own research before making any investment decision. Use the information provided on this website entirely at your own risk.
[ad_2]
Source by [author_name]