Ten Bitcoin ETF Applicants Submit Final Amended Registration Statements
Ten spot bitcoin exchange-traded fund (ETF) applicants have submitted their final amended registration statements to the U.S. Securities and Exchange Commission (SEC). The amended filings, which were due by Monday’s deadline, reveal a fee war among the issuers. Grayscale Investments charges the highest fee of 1.5% while Bitwise offers the lowest fee of 0.24% with a fee waiver for the first $1 billion in trust assets. Blackrock, the world’s largest asset manager, will charge 0.20% for the first 12 months and $5 billion, then increase it to 0.30%.
Spot Bitcoin ETFs on the Verge of Approval
By the Monday deadline, ten spot bitcoin exchange-traded fund (ETF) issuers have submitted their final amended registration statements to the U.S. Securities and Exchange Commission (SEC). Bloomberg analyst James Seyffart shared an updated list of these issuers who met the deadline. In the amended filings, it is evident that there is a fee war among the ETF issuers. Grayscale Investments charges the highest fee of 1.5%, while Bitwise undercuts this with the lowest fee of 0.24%, albeit with a fee waiver for the first six months. Blackrock, the world’s largest asset manager, will charge 0.20% for the first 12 months and $5 billion, which will increase to 0.30% thereafter.
Fierce Fee Competition Among Issuers
Among the ten spot bitcoin ETF issuers, there is intense competition in terms of fees. Grayscale Investments charges the highest fee of 1.5%, and Bitwise offers the lowest fee of 0.24% with a fee waiver on the first $1 billion in trust assets. Ark Invest/21shares offers a fee of 0.25% with a fee waiver for the first six months or $1 billion. Similarly, Vaneck offers a fee of 0.25%. Blackrock, the world’s largest asset manager, charges 0.20% for the first 12 months and $5 billion, increasing to 0.30% thereafter. Other issuers include Franklin Templeton with a fee of 0.29%, Fidelity with 0.39%, and Wisdomtree with 0.5%.
Hashdex Different from the Rest
An exception among the ten spot bitcoin ETF issuers is Hashdex, as it is the only one already operating as an ETF. While Hashdex did not file an amendment by the Monday deadline, it has a different position compared to the others. Hashdex is attempting to convert its existing BTC futures ETF to a spot product. Although its filings may have different timing, there is still a possibility of approval for Hashdex along with the other issuers.
Spot Bitcoin ETF Fees Compared to Trading Costs
Vaneck’s director of digital assets strategy, Gabor Gurbacs, points out that holding a bitcoin ETF for a year costs less than a single trade on Coinbase. The fees for retail-size trades are approximately 40-60bps for a bitcoin ETF compared to about 25bps for a trade on Coinbase. However, Gurbacs highlights that the profits for ETFs will be minimal, even with multi-billion-dollar assets under management, due to storage and execution costs.
Authorized Participants for Spot Bitcoin ETFs
All ten spot bitcoin ETF applicants have named authorized participants (APs) for their ETFs. The firms acting as APs for these ETFs include Jane Street, Virtu, JP Morgan, ABN AMRO, Macquarie, Cantor Fitzgerald, and Marex Capital. Grayscale Investments, in its fourth amended filing, has named Jane Street Capital, LLC, Virtu Americas LLC, Macquarie Capital (USA) Inc., and ABN AMRO Clearing USA LLC as their authorized participants.
SEC Decision and Blackrock’s Expectations
The SEC is expected to make a decision on spot bitcoin ETFs by Wednesday, which is the deadline for the joint proposal by Ark Invest and 21shares. However, there are speculations that the securities regulator might announce a decision earlier. Blackrock anticipates the approval of its Ishares Bitcoin Trust on Wednesday and has reportedly secured over $2 billion for its spot bitcoin ETF launch.
Hot Take: Fierce Competition in the Race for Spot Bitcoin ETF Approval
Ten spot bitcoin ETF applicants have submitted their final amended registration statements, revealing a fee war among the issuers. Grayscale charges the highest fee of 1.5%, while Bitwise offers the lowest fee of 0.24% with a six-month fee waiver. Blackrock anticipates approval for its Ishares Bitcoin Trust, offering a fee of 0.20% for the first 12 months and $5 billion. The SEC is expected to make a decision on spot bitcoin ETFs by Wednesday, with Blackrock reportedly lining up more than $2 billion for its launch. The competition among issuers reflects the increasing demand for a regulated bitcoin ETF.
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