As anticipated, several applicants have submitted final amendments to their Form S-1 with the U.S. Securities and Exchange Commission (SEC) on January 8, aiming to be among the first to launch spot Bitcoin exchange-traded funds (ETFs) in the United States. Valkyrie took an early lead by filing a final S-1 amendment ahead of the anticipated approval date of January 10, which is speculated to mark the debut of the initial spot Bitcoin ETFs in the country. Following Valkyrie, numerous entities including WisdomTree, BlackRock, VanEck, Invesco, Galaxy, Grayscale, ARK Invest, 21Shares, Fidelity, Bitwise, and Franklin Templeton also submitted their amendments.
The new filings initiate what could be a groundbreaking week for Bitcoin, with issuers expected to finalize their Form S-1 amendments today. These amendments encompass information on potential ETF market makers and details regarding fees associated with the ETFs.
Some filers have made significant adjustments to trading fees for potential spot Bitcoin ETF products. ARK and 21Shares, for instance, plan to waive a 0.25% fee on the initial $1 billion of assets under management (AUM) for six months after listing. BlackRock’s Bitcoin ETF intends to impose a 0.30% fee on $5 billion in AUM after an initial charge of 0.2% for the first 12 months.
Bloomberg ETF analyst Eric Balchunas noted that the ongoing fee competition among Bitcoin spot ETFs may not significantly impact the market's competitiveness in the near term. Balchunas emphasized that long-term investors, particularly advisors, often prioritize standard fees. He commented via X (formerly Twitter) that while all these ETFs offer similar functionalities, potential slight changes in terms of fees could play a role in market dynamics.
In addition to fee details, certain filers like BlackRock have disclosed information about seeding the spot Bitcoin ETFs. BlackRock mentioned in its S-1 registration statement that the trust acquired 227.9 BTC, valued at $10 million, on January 5, 2024, utilizing proceeds from seeding the basket. The company clarified that these 400,000 shares represent the total shares outstanding as of the prospectus date. Similarly, ARK and 21Shares plan to purchase an initial seed creation basket valued at $437,000 around January 8, utilizing these funds to acquire Bitcoin "on or before" the listing of shares on the Cboe BZX exchange.
