Multiple applicants have filed amended S-1 forms in the final step in the process before a potential spot bitcoin ETF approval.
BlackRock, Ark Invest/21Shares, VanEck, WisdomTree, Invesco, Fidelity and Valkyrie have all filed amended S-1 forms.
Included in the filings are some of the sponsor fees, which have not previously been announced. BlackRock has set its sponsor fee at 0.3% — although this will be even lower at 0.2% for the first year, or until the ETF hits $5 billion in assets. VanEck has gone for the joint lowest permanent fee out of the issuers so far at 0.25%. WisdomTree has gone for a higher 0.5% fee.
"Damn, the fee for BlackRock’s Bitcoin ETF will be 0.30% as per their just filed S-1. This is much cheaper than I predicted. Life just got a LOT tougher for everyone else. The ETF Terrordome is no joke," said Bloomberg ETF analyst Eric Balchunas on X.
Ark/21Shares has also dropped its fee from 0.8% to 0.25% to make it more competitive — and it will have no fees for the first six months or until the ETF hits $1 billion in assets.
"ARK going from 80bps to 25bps in one shot is breathtaking. The fee wars are intense but that’s another level. Altho they kinda had to. BlackRock at 30bps is potential instant destroyer of anyone much higher," Balchunas noted.
Grayscale also filed an amended S-3 form as part of its plan to turn its flagship bitcoin trust into an ETF. The form shows it has lowered its fee from 2% to 1.5%.
This comes days after the applicants filed amended — and likely final versions — of their 19b-4 forms. New filings came in for proposed funds from Grayscale Investments, Valkyrie, ARK 21Shares and Invesco. The Cboe BZX exchange also filed forms for VanEck, WisdomTree, Pando Asset AG and Franklin Templeton.
With the final documents handed in, it's now up to the SEC to decide whether to approve the 19b-4 forms and for the S-1 forms to come into effect. If both of these happen, trading can start the following day.
Source : The Block / Jan 8, 2024