All Major Players Rush to Amend S-1 Forms
All major players in the Bitcoin exchange-traded product (ETP) rushed to amend S-1 forms before the SEC’s final deadline on Monday. Tuesday saw some stir due to a false SEC approval post, which was later identified as a hacking incident and removed from the official channel.
Applicants Adjust Offerings
In the meantime, applicants are adjusting their offerings, with implications for fees, waivers, and custodial relationships ahead of the expected decision on Wednesday.
Bloomberg Analyst Reveals S-1 Documents
Bloomberg’s senior analyst, James Seyffart, offered a glimpse of the final S-1 documents.
Bitwise ETF Offers Fee Waiver
Bitwise ETF, under the ticker BITB, is offering a waiver for six months or until the fund reaches $1 billion in assets. Afterward, it will charge a fee of 0.20%, slashed from the earlier 0.24%. The fund is listed on the NYSE, with Coinbase named as the custodian.
ARK 21Shares Presents Similar Model
ARK 21Shares, under the ticker ARKB, presents a similar model. The fee after the waiver period is at 0.25%. It will be listed on CBOE, with Coinbase as its custodian.
Fidelity Wise Slashes Fee
Fidelity Wise has slashed its fee to 0.25% with a waiver period until July 31. FBTC will be listed on CBOE, and custodian is Fidelity.
Competition Leads to More Fee Slashes
WisdomTree Bitcoin Trust, BTCW, is reportedly offering a 0.30% post-waiver. WisdomTree’s waiver lasts for 6 months or until $1 billion in assets. The custodian is again Coinbase.
Invesco Galaxy Bitcoin ETF, under the ticker BTCO, has a waiver term of 6 months, or $5 billion in assets. Listed on CBOE, BTCO will charge 0.39% after this period. Coinbase serves as the custodian for Invesco ETP as well.
Valkyrie Bitcoin Fund, BRRR, sets only a 3-month waiver period. It will charge a relatively higher fee of 0.49% after that. BRRR will be listed on Nasdaq and use Coinbase as their custodian.
The iShares Bitcoin Trust, IBIT, has opted for a revenue-intensive model. It has set a fee of 0.20% for a 12-month waiver period or until it achieves $5 billion in assets. The post-waiver fee is 0.30%. It will be listed on Nasdaq, and Coinbase continues to be the preferred custodian.
VanEck Bitcoin Trust, HODL, is levying a 0.25% fee without waivers, to be listed on CBOE. Gemini will act as the custodian.
Franklin Bitcoin ETF, EZBC, comes in with a 0.29% fee, no waiver, listed on CBOE, and Coinbase as the custodian.
Hashdex Bitcoin ETF has a listed 0.90% fee with no waiver, marked for the NYSE, with BigGo as the custodian.
Lastly, Grayscale Bitcoin Trust (GBTC) stands out with a substantial fee of 1.5% with no waiver. A potential slash is expected at this range. It will be listed on the NYSE and use Coinbase as the custodian.
Competition in the Crypto ETP Space
This panorama of filings and re-filings is an effort to capture market share in the burgeoning crypto ETP space. Meanwhile, the custodial arrangements indicate a strong preference for Coinbase, with other major players like Fidelity, Gemini, and BitGo also in the mix.
Hot Take: Bitcoin ETF Competition Heats Up
All major players in the Bitcoin exchange-traded product (ETP) market are scrambling to amend their S-1 forms before the SEC’s final deadline. Despite a false SEC approval post causing some confusion, applicants are adjusting their offerings, particularly in terms of fees and custodial relationships. Bloomberg’s senior analyst has provided insights into the final S-1 documents. Several ETFs are slashing fees and offering waiver periods, including Bitwise ETF, ARK 21Shares, and Fidelity Wise. Competition is fierce among these offerings as they vie for market share in the growing crypto ETP space. Coinbase remains a preferred custodian choice, although other players like Fidelity, Gemini, and BitGo are also involved.
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