In recent weeks, there have been notable developments in the US spot bitcoin ETF saga, with asset managers revising their application forms following dialogue with the US Securities and Exchange Commission. (SEC).
On December 29, which marked the last day for the S-1 amendments, Fidelity Investments, along with six other asset managers, namely VanEck, Bitwise, WisdomTree, Invesco, BlackRock and Valkyrie, updated their ETF applications to the SEC in what appears to be a preparatory step for approval by the US securities regulator.
Fidelity Offers Lowest Sponsor Fee in Asset Manager Incentive Competition
In its S-1 Form Update, Fidelity Investments revealed more information about its bitcoin spot ETF proposal, notably announcing Jane Street Capital as an authorized participant (AP). For context, authorized participants are typically large financial institutions that play a crucial role in the creation and redemption process of an ETF.
Additionally, Fidelity also seeks to outperform its asset manager peers in attracting investors by offering the lowest sponsor fee of 0.39%. Eric Balchunas, Senior ETF Analyst at Bloomberg has praised this move, stating that “Fidelity is officially ready to party.”
Invesco/Galaxy is in and here's something amazing: there will be no fees for the first six months AND for the first $5 billion in assets, the APs will also be named, Virtu and JPMorgan (again lol). Another horse. Are we already having fun? pic.twitter.com/mDUOOSnA29
– Eric Balchunas (@EricBalchunas) December 29, 2023
Interestingly, some asset managers have gotten in on this incentive game, with Invesco waiving its 0.59% sponsor fee on the first $5 billion in Trust assets for the first six months after launching its bitcoin ETF proposal.
Meanwhile, as updated on December 29, BlackRock, considered the world's largest asset manager and a leading participant in the race for SEC approval, announced Jane Street Capital and JP Morgan Securities as its authorized participants. .
In total, 13 of the 14 asset managers vying for approval of a bitcoin spot ETF modified their applications on Friday. These include Grayscale, ARK Invest, Franklin Templeton, Global X ETFs, Pando Asset and Hashdex, in addition to the seven initially mentioned.
bitcoin ETF Saga Nears Possible End
Following multiple amendments made by various asset managers in the bitcoin ETF spot race, it appears that the entire saga is coming to a definitive conclusion. The widely acclaimed decision window for the SEC remains between January 8 and 10, and many analysts are optimistic about several approval orders from the regulatory body.
However, analysts remain divided over the possible effects of the spot ETF on the bitcoin asset.
According to data analysis platform CryptoQuant, the approval of the bitcoin spot ETF could cause the fall of the digital asset bitcoin-news/analysts-sound-alarm-spot-bitcoin-etf-approval/” target=”_blank” rel=”noopener nofollow”>only $32,000 in what is called a “sell the news” event. This contrasts with other analysts who bitcoin-news/the-bitcoin-spot-etf-boom-vaneck-forecasts-2-4-billion-inflows-in-q1-2024/” target=”_blank” rel=”noopener nofollow”>predict higher demand for bitcoinwhich caused an increase in the market price.
At the time of writing, bitcoinbitcoin/” target=”_blank” rel=”noopener nofollow”> trade winds to $42,060.01 after a drop of 1.42% in the last day. Meanwhile, the token's daily trading volume increased by 2.28% and is valued at $23.74 billion.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2023/12/Fidelity-Others-Amend-Bitcoin-ETF-Spot-Forms-on-Deadline-Day" alt="bitcoin ETF” width=”1479″ height=”893″/>
bitcoin trading at $42,060.06 on the daily chart | Source: BTCUSDT chart on Tradingview.com
Featured image from CNBC, chart from Tradingview
