Four Potential Spot Bitcoin ETF Issuers Disclose Initial Seed Capital
Four potential issuers of spot Bitcoin exchange-traded funds (ETFs) have revealed the initial seed capital they have invested, totaling over $10 million. This disclosure comes ahead of the U.S. Securities and Exchange Commission’s (SEC) decision on the ETF bids.
VanEck Leads with $72.5 Million Seed Capital
VanEck has outpaced BlackRock in terms of direct investment into its spot Bitcoin ETF. VanEck has seeded its bid with an impressive $72.5 million.
Bitwise Seeds Its BTC ETF with $500,000
Crypto investment firm Bitwise has seeded its Bitcoin ETF with $500,000. However, it expects an additional cash injection of $200 million from Pantera Capital if the SEC approves their applications.
BlackRock and Fidelity’s BTC Funds
BlackRock and Fidelity have seeded their BTC funds with $10 million and $20 million, respectively. These figures were disclosed or confirmed in amended S-1 forms submitted to the SEC on January 8.
Fees for Spot Bitcoin ETFs Revealed
In addition to disclosing seed capital, the updated filings also revealed the fees these issuers plan to charge. Grayscale’s GBTC provider shocked experts with its high fee rate of 1.5%, significantly higher than its competitors.
Fee Waivers and Possible SEC Decision
Five firms, including Invesco Galaxy, will offer fee waivers for select spot Bitcoin ETFs for up to six months. These filings suggest that a decision from the SEC regarding spot Bitcoin ETFs is imminent, potentially allowing American investors to trade BTC via regulated vehicles for the first time.
VanEck’s Commitment to Supporting Bitcoin Developers
VanEck has demonstrated its long-term vision and optimism for spot BTC ETFs by pledging 5% of its potential profit to support core Bitcoin developers. The firm has already made a $10,000 donation toward this cause.
Hot Take: Spot Bitcoin ETFs Edge Closer to SEC Decision
The disclosed seed capital and fee structures indicate that spot Bitcoin ETFs are nearing a decision from the SEC. If approved, these ETFs will provide American investors with regulated access to trade BTC, potentially revolutionizing the cryptocurrency market.
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