Fidelity Investments and Galaxy/Invesco have proposed fee structures for Bitcoin exchange-traded funds (ETFs), pending approval.
Fortune reports that Fidelity’s Wise Origin Bitcoin Trust will charge 0.39% yearly, while Galaxy/Invesco’s BTCO fund will charge 0.59% after a six-month fee waiver. The information came from a December 29 court filing.
The study discusses fee arrangements and Jane Street Capital’s status as a “authorized participant” for Fidelity, WisdomTree, and Valkyrie Bitcoin ETFs. It appears that Jane Street Capital will handle the ETFs’ share price arbitrage with Bitcoin’s market price. Cantor Fitzgerald is another recognized Valkyrie member. Galaxy/Invesco and BlackRock designated JPMorgan and Virtu as authorized participants.
Invesco/Galaxy is in and here's a whopper: it will be waiving fee for first six months AND for first $5b in assets, APs named as well, Virtu and JPMorgan (again lol). Another horse in. Are we having fun yet? pic.twitter.com/mDUOOSnA29
— Eric Balchunas (@EricBalchunas) December 29, 2023
Their “cash” production and redemption process distinguishes these ETFs. Authorized participants will deposit cash equal to the Bitcoin value they want to add, not Bitcoin. The fund will buy Bitcoin using this money. This solution addresses the SEC’s preference to prevent broker-dealers handling Bitcoin directly.
The Bitcoin community has been eagerly awaiting the adoption of a US spot ETF as a potential catalyst for attracting new investors and increasing Bitcoin’s market value. Previous SEC rejections of Bitcoin ETF applications have exacerbated this anticipation.
Grayscale’s SEC case triumph changed the situation in August. The SEC was ordered to reconsider its rejection of Grayscale’s spot Bitcoin ETF application by the U.S. Court of Appeals.
Fidelity, WisdomTree, Invesco Galaxy, and Bitwise have all filed fresh Bitcoin ETF filings and changes since this development.
No spot Bitcoin ETF has been approved by the SEC. This extended consideration keeps market participants and potential investors anticipating a decision that could change the Bitcoin investing landscape.
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