Key Takeaways
- Fidelity highlighted Jane Street Capital and JP Morgan Securities as authorized participants
- BlackRock, VanEck, Valkyrie Investments, Bitwise Investment Advisers, Invesco Ltd., Fidelity, WisdomTree submitted documents to the SEC
Several major asset management firms, including Fidelity, BlackRock, and VanEck, have submitted amended forms to the Securities and Exchange Commission (SEC) for proposed spot bitcoin ETFs, marking a pivotal moment in the industry’s pursuit of approval. This move also sets the stage for potential competition in offering the lowest fee, contingent on SEC approval.
Fidelity’s recent update highlighted Jane Street Capital and JP Morgan Securities as authorized participants, showcasing an exceptionally low sponsor fee of just 0.39%, currently the most competitive among contenders. This positions Fidelity as a frontrunner in the race for market entry.
On the last business day of the year, BlackRock Asset Management, VanEck, Valkyrie Investments, Bitwise Investment Advisers, Invesco Ltd., Fidelity, WisdomTree Investments, and a joint venture between Ark Investments and 21Shares submitted new documents to the SEC. These detailed their arrangements with marketmakers to ensure efficient and liquid trading when the ETFs launch.
Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, noted that Fidelity’s fee is currently the lowest among peers, signaling its readiness to compete in the market. While not all firms have disclosed their proposed fees, Invesco announced a sponsor fee of 0.59%, planning to waive it for the initial six months. Observers speculate whether BlackRock will enter with an even lower fee than Fidelity, potentially reshaping the competitive landscape.
Adding momentum, other asset managers, including Valkyrie, Bitwise, WisdomTree, and Franklin Templeton, updated their ETF applications on the last business day of the year. BlackRock and Valkyrie named Jane Street Capital and JP Morgan Securities as authorized participants, a crucial factor in ongoing discussions with the SEC.
The cryptocurrency industry has long awaited SEC approval for a spot bitcoin ETF, and while the regulator has not yet given its nod, recent filings from major players signal a potential breakthrough. The SEC had set December 29 as the deadline for spot BTC ETF S-1 amendments. Grayscale, in its latest filing on December 27, announced the conversion of its Grayscale Bitcoin Trust into a cash-only spot ETF, aligning with similar moves by VanEck and BlackRock in earlier revisions.
