Breaking: Companies Nearing ETF Approval Stage as They Submit Final Paperwork
A fierce battle is unfolding in the Bitcoin ETF space with companies engaging in a fee war
Several companies in the US have submitted their final paperwork to the Securities and Exchange Commission (SEC) on January 8 to get the spot Bitcoin exchange-traded fund (ETF) approved.
First, Valkyrie submitted its final paperwork, followed by big names like WisdomTree, BlackRock, VanEck, Invesco, Galaxy, Grayscale, ARK Invest, and 21Shares.
As the whole community impatiently awaits the approval, this week could be a big one for Bitcoin as these companies are expected to finish up their paperwork. The paperwork includes details about how much they’ll charge and who will help them sell these ETFs, according to Cointelegraph.
Some of these companies are lowering their fees to attract more customers. In fact, a fierce battle is unfolding in the Bitcoin ETF space with companies engaging in a fee war.
For instance, Invesco and Galaxy lead the pack with a fee structure starting at 0 basis points (bps) and gradually increasing to 59 bps. BlackRock follows closely with an initial 20 bps, rising to 30 bps.
Bitwise offers a competitive edge with a starting point of 0 bps, escalating to 24 bps, while Ark adopts a similar strategy with 0 bps initially and a subsequent increase to 25 bps.
Fidelity also enters the fray with a fee set at 39 bps, Valkyrie at 80 bps, and Grayscale with a more substantial 150 bps. This fee competition underscores the intense dynamics in the race to launch Bitcoin ETFs, with companies strategically positioning themselves to attract investors with competitive fee structures.
On another note, Jeff Billingham, Chainalysis Director of Strategic Initiatives, shared with UNLOCK Blockchain his thoughts, stating that the introduction of cryptocurrency ETFs has the potential to enhance market accessibility for institutional and retail investors alike, providing a regulated avenue for exposure to the world’s largest cryptocurrency. There is no doubt that these products will be welcome by investors of varying sizes.
He added that such ETFs are likely to bring new institutional flows. Independent broker dealers, wealth divisions at banks, and RIAs aren’t a part of the crypto retail ecosystem currently, and they would likely make up a significant portion of ETF activity.
