Key takeaways:
- It was to be expected that a number of applicants for a spot Bitcoin ETF hurried to submit their final Form S-1 modifications to the US SEC.
- Eleven asset management companies with trillions of dollars worth of investments under management have filed their S-1 final modifications for the Spot Bitcoin ETF.
It was to be expected that a number of applicants for a spot Bitcoin Exchange-Traded Fund (ETF) hurried to submit their final Form S-1 modifications to the US Securities and Exchange Commission (SEC) on Monday, January 8.
Eleven asset management companies with trillions of dollars worth of investments under management have filed their S-1 final modifications for the Spot Bitcoin ETF.
BlackRock, Grayscale, ArkInvest, Fidelity, Franklin, VanEck, Valkyrie, Bitwise, Hashdex, WisdomTree, and Invesco Galaxy are the eleven asset management companies that have filed their Spot Bitcoin ETF S-1-final revisions. Although most of the corporations have already filed their S-1 final modifications, the other firms are now in the process of doing so.
Before January 10, which is when most people anticipate the first spot Bitcoin ETFs to be approved in the US, asset management Valkyrie was one of the first firms to submit its final S-1 modification.
WisdomTree, BlackRock, VanEck, Invesco, Galaxy, Grayscale (S-3 filing), ARK Invest and 21Shares, Fidelity, Bitwise, and Franklin Templeton trailed Valkyrie in order of appearance.
As the optimistic issuers are likely to finalize their Form S-1 modifications today, the new filings set the stage for what might be a historic week for Bitcoin. The fees and identities of the market makers for the prospective ETFs are disclosed in the S-1 amendments.
The top asset management companies will charge their institutional clients very little in fees for Spot Bitcoin ETF services.
For the first year or until the assets under management (AUM) reach the first $5 billion, BlackRock’s fees are fixed at 0.20%. Consequently, starting in the thirteenth month, fees will rise to 0.30%.
For the first six months or until $1 billion in AUM is reached, ArkInvest waives fees. After that, starting in the seventh month, fees will increase to 0.25%.
While VanEck and WisdomTree impose fees of 0.5% and 0.25%, respectively, Fidelity charges a fixed cost of 0.39%. Franklin charges 0.29%, Invesco Galaxy charges 0.59%, and Valkyrie charges 0.8%. The 1.5% cost is higher for grayscale.
For the first six months of operation, or until AUM hits $1 billion, Bitwise is free of charge. After this time, costs rise to 0.24% starting in the seventh month. As of right now, Hashdex has not revealed its fees.
Nonetheless, it is reasonable to assume that the costs for the Bitcoin ETF will be minimal, considering the magnitude of Grayscale Asset Management. Furthermore, investors should anticipate that the BTC ETF charge will be less than the 0.9% markup with Franklin and Bitwise.
Some filers, such as BlackRock, supplied information about spot Bitcoin ETFs for seeding in addition to the fees. According to BlackRock, on January 5, 2024, the trust spent $10 million to acquire 227.9 BTC with the money from the seed creation baskets. In its S-1 registration statement, the company stated:
“As of the date of this prospectus, these 400,000 Shares represent all of the outstanding Shares,”
According to the S-1 document, ARK and 21Shares intend to pay $437,000 for the first seed creation baskets “on or about” January 8. The trust intends to spend the funds “at or prior” to listing shares on the Cboe BZX Exchange for the purpose of purchasing Bitcoin.
According to reports, the Spot Bitcoin ETF may be approved by the US SEC this month and launch in January 2024. According to Bloomberg, there is a 95% chance that the Bitcoin ETF will be approved by this week’s end.
