In a notable development in the cryptocurrency market, several applicants for spot Bitcoin exchange-traded funds (ETFs) in the United States have recently updated their applications with new fee structures. This update comes as part of the ongoing race to secure the first spot Bitcoin ETF approval from the U.S. Securities and Exchange Commission (SEC).
Leading the charge is BlackRock, the world’s largest asset manager, which has submitted an amendment to its S-1 registration statement. In this latest update, BlackRock’s iShares Bitcoin Trust has proposed a Sponsor Fee of 0.30%, to be charged on the net asset value of the Trust. This fee, payable in U.S. dollars, is expected to be levied at least quarterly.
The flurry of amendments on January 8th also revealed the proposed fee structures of other ETF applicants:
VanEck has a reported fee of 0.25%.
WisdomTree proposes a fee of 0.5%.
Ark/21 Shares reduced its fee from 0.8% to 0.25%.
In contrast, Grayscale stands out with a significantly higher proposed fee of 1.5%, raising questions about its competitiveness in the market compared to other applicants with lower fees.
With the SEC’s deadline of January 10th to decide on the approval of spot Bitcoin ETFs fast approaching, there is a mixed sentiment in the financial community. A survey by Bitwise indicated that most financial advisors believe the SEC will deny the Bitcoin ETF applications. However, Bloomberg analyst Eric Balchunas recently raised the probability of approval to above 90%, and betting markets like Polymarket are showing an 85% chance of a positive outcome. As the deadline nears, these amendments and the SEC’s impending decision are eagerly awaited by investors and market watchers alike.