BlackRock, a Bitcoin ETF applicant, has secured a waiver for 12 months, as opposed to the initially reported 6-month duration. This development unfolded amidst a dynamic landscape of fee competition among Bitcoin ETF filers, as detailed by Bloomberg ETF analyst James Seyffart. In the ongoing fee war, Bitwise Invest claims the lowest long-term fee at 0.24%, closely followed by vaneck_us at 0.25%. Notably, two ETFs are offering fee waivers for the initial 6 months, reducing their fees to 0.0%, while BlackRock has opted to waive 0.20%.
Adding complexity to the scenario, all these ETFs have multiple authorized participants, some with up to four names. The key players acting as authorized participants for these ETFs include Jane Street, Virtu, JP Morgan, ABN AMRO, Macquarie, Cantor Fitzgerald, and Marex Capital. There is also speculation about the impact of an “in-kind” mechanism on the participation of these entities.
Hashdex, however, has not provided an update yet. Notably, Hashdex stands out from the rest as the only product already operating as an ETF, bringing a unique perspective to the evolving landscape.
Shifting focus, Fidelity Investments has outlined a 0.39% annual fee for investors in its Wise Origin Bitcoin Trust. On a parallel note, Galaxy/Invesco positions itself with a 0.59% annual fee for its BTCO fund. Noteworthy is Galaxy/Invesco’s strategic move to exempt fees for the initial six months of the fund’s operation and the first $5 billion in assets.
SEC Adds Comments To Bitcoin ETF Filings
As reported by TronWeekly, this exemption extends to key authorized participants like Virtu and JPMorgan, adding a competitive edge to their offering. Despite the fee dynamics in play, there is currently no update from Hashdex, which, as mentioned earlier, operates as an ETF and stands out in the evolving landscape of Bitcoin exchange-traded funds.
Shortly after the submission of documents by ETF applicants outlining the fees for their proposed products, officials from the U.S. Securities and Exchange Commission provided feedback to a group of potential issuers of bitcoin exchange-traded funds, as per sources familiar with the matter. The feedback primarily focused on minor details within the amended S-1 forms rather than substantial changes, indicating that it is unlikely to impact the anticipated timeline for potential approval by the regulatory body.