Valkyrie Takes the Lead in Filing its Amendment
All eleven asset management firms, including BlackRock, Grayscale, ArkInvest, and Fidelity, have submitted their final amendments for spot Bitcoin exchange-traded funds (ETFs) to the US Securities and Exchange Commission (SEC). Valkyrie was one of the first companies to submit its final amendment before the January 10 deadline, positioning itself strategically for the potential approval of the first spot Bitcoin ETFs in the United States. Following Valkyrie, other contenders such as WisdomTree, BlackRock, and VanEck also submitted their final amendments.
Fee Reductions to Attract Investors
Some firms have proactively reduced fees for their potential spot Bitcoin ETFs to attract investors. ARK and 21Shares, for example, plan to waive their 0.25% fee for the first $1 billion in assets under management (AUM) for the first six months after listing. BlackRock will charge 0.3% for the first year or $5 billion in AUM after an initial 0.2% fee. Despite these fee reductions, ETF analyst Eric Balchunas believes that the fee war is unlikely to significantly impact the competitive landscape. Balchunas notes that long-term investors are more concerned about regular fees.
Initial Seed Creation Baskets
BlackRock has disclosed that it purchased 227.9 BTC with the proceeds of the seed creation baskets on January 5, 2024, amounting to $10 million. This represents all outstanding shares as of the date of the prospectus. ARK and 21Shares also plan to acquire initial seed creation baskets of $437,000 by January 8. These funds will be used to acquire Bitcoin before listing the shares on the Cboe BZX Exchange.
Ready for Milestone Approval
The filing of final amendments by these asset management firms sets the stage for a potential historic week for Bitcoin. These firms are poised to become the first spot Bitcoin ETFs in the United States. Speculations are high that the SEC could approve the Spot Bitcoin ETF later this month, with a 95% probability of approval.
Hot Take: The First Spot Bitcoin ETFs Could Herald a New Era in Crypto Investment
The submission of final amendments by the various asset management firms for spot Bitcoin ETFs marks a significant milestone in the journey towards bringing Bitcoin investment to a broader audience. If approved, these ETFs could make it easier for investors to gain exposure to Bitcoin without directly owning the cryptocurrency. The reduced fees offered by some firms also aim to attract more investors to this new investment vehicle. With the potential approval of the first spot Bitcoin ETFs, we could witness a new era in crypto investment, as it becomes more accessible and regulated.
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