Race for First Approved Spot Bitcoin ETF Continues
The race to the first approved spot Bitcoin ETF by the United States Securities and Exchange Commission (SEC) is still ongoing. Several applicants, including BlackRock, have made amendments to their S-1 registration statements under the country’s Securities Act.
Latest Changes in Sponsor Fees
On January 8th, iShares Bitcoin Trust (owned by BlackRock) proposed a Sponsor Fee of 0.30%. This fee is charged on the net asset value of the Trust and is payable at least quarterly in USD. Other ETF applicants have reported different fees:
- VanEck: 0.25%
- WisdomTree: 0.5%
- Ark/21 Shares: 0.25% (down from 0.8%)
Grayscale’s Higher Proposed Fees
Grayscale, however, has taken a different approach by proposing fees of 1.5%, which is significantly higher than the average. This raises concerns about the company’s competitiveness.
SEC Decision Deadline Approaching
The SEC has until January 10th to decide whether to approve applications for a spot Bitcoin ETF.
Analysts and Surveys Divided on Approval Odds
Analysts and surveys are divided on the likelihood of approval. According to a survey by Bitwise, most financial advisors believe Bitcoin ETFs will be denied. However, Bloomberg’s Eric Balchunas raised the odds of approval to above 90%, while Polymarket speculators bet on an 85% chance of approval.
Hot Take: The Race Intensifies as SEC Decision Looms
The race for the first approved spot Bitcoin ETF in the US is heating up as applicants make amendments to their registration statements. With BlackRock, VanEck, WisdomTree, and Ark/21 Shares proposing different fees, competition is fierce. Grayscale’s significantly higher proposed fees raise questions about its competitiveness. The SEC’s decision deadline of January 10th has analysts and surveys divided on the odds of approval. While most financial advisors believe Bitcoin ETFs will be denied, Bloomberg’s Eric Balchunas and Polymarket speculators have a more optimistic outlook. As the deadline approaches, all eyes are on the SEC as the crypto community eagerly awaits its decision.
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