Multiple Applicants File Amended S-1 Forms for Potential Bitcoin ETF Approval
Several applicants, including BlackRock, Ark Invest/21Shares, VanEck, WisdomTree, Invesco, Fidelity, and Valkyrie, have submitted amended S-1 forms as the final step before potential approval of a spot bitcoin ETF. These filings reveal sponsor fees that were previously undisclosed. BlackRock has set its sponsor fee at 0.3%, but it will be reduced to 0.2% for the first year or until the ETF reaches $5 billion in assets. VanEck has the lowest permanent fee among the issuers at 0.25%. WisdomTree has opted for a higher fee of 0.5%.
BlackRock’s Lower Sponsor Fee Impacts Competitors
BlackRock’s lower sponsor fee of 0.3% for its bitcoin ETF has surprised industry experts and intensified competition among other applicants. Bloomberg ETF analyst Eric Balchunas stated that this fee reduction makes life much tougher for other competitors. The potential impact of BlackRock’s low fee has been described as an “ETF Terrordome.”
Ark Invest/21Shares Reduces Fee to Stay Competitive
Ark Invest/21Shares has also reduced its fee from 0.8% to 0.25% to enhance competitiveness in the market. The company will not charge any fees for the first six months or until the ETF reaches $1 billion in assets. This significant fee reduction by Ark Invest/21Shares has been praised as a strategic move amid intense fee wars in the industry.
New Filings Submitted for Proposed Funds
New filings have been submitted for proposed funds from Grayscale Investments, Valkyrie, ARK 21Shares, and Invesco. Additionally, the Cboe BZX exchange has filed forms for VanEck, WisdomTree, Pando Asset AG, and Franklin Templeton. These filings mark the likely final versions of their 19b-4 forms and bring the process closer to potential approval.
SEC’s Decision and Trading Start
The SEC will now review the 19b-4 forms and determine whether to approve them. Once approved, the S-1 forms will come into effect, allowing trading to begin on the following day.
Hot Take: Lower Sponsor Fees Create Intense Competition in Bitcoin ETF Market
The recent filings of amended S-1 forms by multiple applicants for potential bitcoin ETF approval have revealed lower sponsor fees, causing intense competition among industry players. BlackRock’s decision to set its fee at 0.3% and Ark Invest/21Shares’ reduction to 0.25% have surprised experts and impacted competitors. This fee war in the market has been described as an “ETF Terrordome,” with BlackRock’s low fee potentially dominating the industry. As the SEC reviews the forms, the crypto community eagerly awaits a decision that could shape the future of bitcoin ETFs.
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