Asset Management Giants Submit Amended Forms for Bitcoin ETFs
Asset management giant Fidelity, along with BlackRock and VanEck, has submitted amended forms to the Securities and Exchange Commission (SEC) for their proposed spot bitcoin exchange-traded funds (ETFs). The move comes ahead of a January deadline for potential approval. The amended forms reveal a potential competition for the lowest fee if the regulator gives the green light.
In its latest update, Fidelity disclosed that Jane Street Capital and JP Morgan Securities would be its authorized participants. Additionally, Fidelity’s proposed fund would have a sponsor fee of just 0.39%, which is currently the lowest fee among competitors.
While many firms have not disclosed their intended fees yet, Invesco stated that its proposed fund would have a sponsor fee of 0.59%. However, it plans to waive this fee for the first six months.
Nate Geraci, president of The ETF Store, believes that BlackRock may come in with a lower fee than Fidelity.
Amended Registration Filings from Other Asset Managers
Other asset managers, including Valkyrie, Bitwise, WisdomTree, and Franklin Templeton, also updated their applications on the last business day of the year. The SEC received fresh filings from these companies.
BlackRock named Jane Street Capital and JP Morgan Securities as its authorized participants. Valkyrie named Jane Street Capital and Cantor Fitzgerald as its authorized participants. Authorized participants are registered broker-dealers involved in the creation and redemption processes.
The Quest for a Bitcoin ETF Continues
The crypto industry has been pursuing a spot bitcoin ETF for years, but the SEC has yet to approve one.
Hot Take: Will Lower Fees Clear Out Competitors?
With asset management giants like Fidelity and BlackRock competing to offer the lowest fees for their proposed bitcoin ETFs, it remains to be seen if these fees will eliminate competitors before the launch. The industry eagerly awaits the SEC’s decision on these applications and the potential approval of a spot bitcoin ETF.
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