In early 2024, the anticipation for a spot Bitcoin ETF reached a crescendo. The latest insights reveal the fee structures set by the proposers of two Bitcoin exchange-traded funds [ETFs], providing a glimpse into the financial framework post-approval. Fidelity Investments has delineated a 0.39% annual fee for investors in its Wise Origin Bitcoin Trust, while Galaxy/Invesco is positioned to charge 0.59% per year for its BTCO fund. A noteworthy facet of Galaxy/Invesco’s approach is the exemption of fees for the initial six months of the fund’s operation and the first $5 billion in assets, including key authorized participants like Virtu and JPMorgan.
In a fascinating turn of events, Jane Street Capital is slated to be the “authorized participant” for the Bitcoin ETFs proposed by Fidelity, WisdomTree, and Valkyrie. This designation empowers Jane Street Capital to exploit price differentials between these funds’ shares and the underlying Bitcoin, enhancing the ETFs’ market dynamics. Valkyrie has additionally enlisted Cantor Fitzgerald as a secondary authorized participant, demonstrating a strategic approach to ensure robust market liquidity. Notably, Galaxy/Invesco and BlackRock have both entrusted JPMorgan and Virtu with the crucial role of authorized participants.
Community Reacts To Bitcoin ETF
The cryptocurrency community is exuberant about Galaxy/Invesco’s unprecedented six-month fee waiver, with discussions revolving around strategic business decisions aimed at capitalizing on potential tax advantages. Observers are noting the intensifying competition within the market as various players position themselves strategically.
With the commencement of 2024, the crypto market is ablaze with optimism regarding the potential approval of the Spot Bitcoin ETF application submitted by Galaxy CEO Mike Novogratz. Novogratz’s enigmatic proclamation on social media platforms, accompanied by the logos of Invesco and Galaxy, has sparked speculation and excitement within the crypto community. The mention of “big things are coming” and the directive to “Block Your Calendar” have fueled anticipation, creating a buzz around the imminent decision by the US Securities and Exchange Commission [SEC] on the fate of the eagerly awaited Bitcoin spot ETF.