In a significant development in the cryptocurrency investment sphere, major players like Invesco Galaxy, Bitwise, WisdomTree, and Fidelity have joined the race to secure a spot for their Bitcoin exchange-traded funds (ETFs). Kernel News has learned that these companies, along with others like BlackRock, Van Eck, and Valkyrie, rushed to submit their final S-1 form applications to the United States Securities and Exchange Commission (SEC) on December 29, the set deadline for spot BTC ETF S-1 amendments.
This wave of submissions reflects a growing interest and competition in the cryptocurrency ETF market. In their filings, Fidelity, WisdomTree, and Invesco Galaxy revealed their authorized participants. Notably, Invesco Galaxy chose Virtu and JPMorgan, while WisdomTree and Fidelity appointed Jane Street Capital. Interestingly, WisdomTree has decided to maintain in-kind share creation and redemption, despite the SEC’s suggestion to switch to cash.
A unique aspect of this scenario is the emergence of a price war among the competitors. Invesco Galaxy, for instance, has waived its fee for the first six months and for the first $5 billion in assets. In comparison, Fidelity has set its fee at 0.39%. Meanwhile, Bitwise, although yet to name its authorized participants, disclosed an unnamed party interested in purchasing up to $200 million in shares of the ETF.
This situation is further complicated by the investigation of Barry Silbert and the Digital Currency Group by the SEC. Silbert recently resigned from the board of directors of Grayscale, which, like Van Eck and BlackRock, has submitted a new filing to convert its Grayscale Bitcoin Trust into a cash-only spot ETF.
Global Crypto reports: The recent influx of S-1 form amendments for Bitcoin ETFs signals a burgeoning interest and competitive environment in the cryptocurrency investment market. As regulators and financial institutions navigate this evolving landscape, investors and industry observers eagerly await the outcomes of these ETF proposals and the broader implications for the cryptocurrency market.
