Asset management giant Fidelity, alongside other industry heavyweights such as BlackRock and VanEck, submitted amended forms to the Securities and Exchange Commission for their proposed spot bitcoin ETFs. This move comes in anticipation of the upcoming deadline in January for potential approval, signaling a potential competition for the lowest fee once regulatory approval is granted.
In its latest update, Fidelity disclosed Jane Street Capital and JP Morgan Securities as authorized participants, showcasing a sponsor fee of just 0.39% for its proposed fund. This makes it the frontrunner in offering the lowest fee, according to Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence.
On the other hand, Invesco announced a sponsor fee of 0.59% for its proposed fund and plans to waive it for an initial six-month period. Industry experts, such as Nate Geraci, president of The ETF Store, anticipate BlackRock to potentially offer an even lower fee, leading to a competitive landscape in the industry.
Other key players in the crypto industry, including Valkyrie, Bitwise, WisdomTree, and Franklin Templeton, also submitted amended registration filings to the SEC. This indicates the heightened interest and effort within the industry to secure the much-awaited spot bitcoin ETF approval from the SEC, which has been a longstanding goal for the crypto industry.
Furthermore, the appointment of authorized participants, such as Jane Street Capital and JP Morgan Securities by leading financial institutions like BlackRock and Valkyrie, underlines the significance placed on the creation and redemption processes in ongoing discussions with the SEC.
Overall, the proactive efforts by major asset managers and the heightened activity in the crypto industry signal a strong push towards obtaining regulatory approval for spot bitcoin ETFs, an achievement that has eluded the industry for years.
