Await SEC Approval: Spot Bitcoin ETF Issuers File Amended S-1 Applications

Bitcoin ETFs Rush to File Final Form S-1 Amendments

As expected, multiple applicants for a spot Bitcoin (BTC) exchange-traded fund (ETF) have been filing their final Form S-1 amendments to the United States Securities and Exchange Commission (SEC) on Monday, Jan. 8.

Valkyrie was the first to submit its final S-1 amendment prior to Jan. 10, the anticipated date for the first spot Bitcoin ETFs to be approved in the United States. Subsequently, WisdomTree, BlackRock, VanEck, Invesco and Galaxy, Grayscale, ARK Invest and 21Shares, Fidelity, Bitwise and Franklin Templeton all followed suit.

The new filings mark a potentially historic week for Bitcoin as the hopeful issuers are expected to complete their Form S-1 amendments today. The S-1 amendments include information about fees, as well as the identities of the market makers for the potential ETFs.

Competition in the Spot Bitcoin ETF Market

Recent filings from ARK and 21Shares show a fee war is brewing in the spot Bitcoin ETF market, with the ETF sponsors offering to waive their 0.25% fee for the first $1 billion in assets under management (AUM). BlackRock’s Bitcoin ETF has also joined the fray, offering an initial 0.2% fee for the first 12 months or $5 billion in AUM.

According to Bloomberg ETF analyst Eric Balchunas, this fee war is unlikely to have a major impact on competition, as long-term investors tend to focus on regular fees. However, given that many of the ETFs offer similar products, Balchunas noted that the fee war may play a role in investor decision-making.

“Historically this hasn’t moved the needle much. Advisors focused on regular fees since they are long term investors. That said, given all these Bitrise Crypto Today, BTT Crypto Today, Breaking Crypto Today, Compound Crypto Today, About Crypto Today, BAT Crypto Today, Celsius Crypto Today, Brise Crypto Today, Atom Crypto Today, and ANKR Crypto Today ETFs all do the same thing, maybe it will matter all else equal, we’ll see,” Balchunas wrote on X (formerly Twitter).

Apart from the fees, some filers like BlackRock also included information about seeding spot Bitcoin ETFs. BlackRock stated that the trust purchased 227.9 BTC with the proceeds of the seed creation baskets on Jan. 5. 2024, for $10,000,000. “As of the date of this prospectus, these 400,000 Shares represent all of the outstanding Shares,” the firm said in its S-1 registration statement.

ARK & 21Shares plan to purchase the initial seed creation baskets of $437,000 “on or about” Jan. 8, the S-1 statement said. The trust will use the amount to purchase Bitcoin “at or prior” to the listing of shares on the CBOE BZX Exchange. Compound Crypto Today, BAT Crypto Today, and Celsius Crypto Today are all interested in investing in this opportunity.