Last Minute Rush for Bitcoin ETF Submissions Sparks Pricing Competition
Summary:
Contenders for a Bitcoin exchange-traded fund rushed to submit their final versions of S-1 form applications to the United States Securities and Exchange Commission on December 29. The submissions included Invesco Galaxy, Bitwise, WisdomTree and Fidelity following earlier applicants like BlackRock, Van Eck, and Valkyrie. In a competitive twist, a pricing contest emerged, with Invesco Galaxy waving fees for the initial period and Fidelity setting a fee rate at 0.39%. The SEC had set December 29 as the deadline for these submissions. An interesting development was Grayscale's plan to convert its Grayscale Bitcoin Trust into a cash-only spot ETF following the resignation of Barry Silbert from its board.
As the deadline drew near for the submission of the S-1 form applications in the Bitcoin (BTC) exchange-traded fund (ETF) pursuit, contenders waited with bated breath. Submissions arrived at the United States Securities and Exchange Commission (SEC) all day on December 29, with the likes of Invesco Galaxy, Bitwise, WisdomTree and Fidelity filing following submissions from BlackRock, Van Eck and Valkyrie. The recent submissions included announcements by Fidelity, WisdomTree and Invesco Galaxy of their authorized participants, with Invesco Galaxy partnering with Virtu and JPMorgan, and Jane Street Capital selected by both WisdomTree and Fidelity. Ignoring SEC's suggestion to switch to cash, WisdomTree plans to proceed with in-kind share creation and redemption. Meanwhile, analyst Eric Balchunas pointed out that a pricing contest seemed to have commenced, as Invesco Galaxy declared a fee waiver for the first six months or first $5 billion in assets, while Fidelity set its fee at 0.39%.
Bitwise is yet to reveal its authorized participants. However, it mentioned in its updated S-1 that an interested party intends to spend up to $200 million on the ETF's shares. Various firms including BlackRock, Van Eck, Grayscale, Bitwise, WisdomTree, Invesco Galaxy, Fidelity, ARK Invest, Valkyrie, Franklin, Hashdex, Global X ETFs and Pando Asset have applied for spot Bitcoin ETFs through their S-1 applications.
The finalized amendments for spot BTC ETFs S-1 were required by the SEC by December 29. Grayscale's latest submission was a new S-3 filed on December 27, post Barry Silbert's step-down from the board of directors. Following the paths of BlackRock and Van Eck, Grayscale announced its plan to transform its Grayscale Bitcoin Trust into a cash-only spot ETF in the new filing. Currently, Silbert's Digital Currency Group and Silbert himself are subjects of SEC investigation.
Published At
12/30/2023 2:58:41 AM
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