Firms Make Final Changes to Spot Bitcoin ETF Applications: Here are the Details!

• Various applicants have filed amended S-1 forms, the final step in the process before potential approval of a spot Bitcoin ETF.
• Some previously undisclosed sponsor fees are among the applications. BlackRock has set its sponsor fee at 0.3%.
• To make it more competitive, Ark/21Shares reduced its fee from 0.8% to 0.25%—and no fees will be charged until the ETF reaches $1 billion or for the first six months.

On Monday, January 8th, firms applying for a spot Bitcoin ETF made final changes: What details stand out?

Firms Update Spot Bitcoin ETF Applications

Various applicants have filed amended S-1 forms, the final step in the process before potential approval of a spot Bitcoin ETF. BlackRock, Ark Invest/21Shares, VanEck, WisdomTree, Invesco, Fidelity, and Valkyrie have all filed amended S-1 forms.

Some previously undisclosed sponsor fees are among the applications. BlackRock has set its sponsor fee at 0.3%—however, this will be as low as 0.2% for the first year until the ETF reaches $5 billion. VanEck chose 0.25%, the lowest enduring fee among issuers so far. WisdomTree set a higher fee at 0.5%.

ETF analyst Eric Balchunas said, “Wow, BlackRock’s fee for its Bitcoin ETF will be 0.30%, according to the S-1 just filed. That’s way cheaper than I guessed. Life is serious in the ETF Terrordome for everyone else.”

Ark/21Shares reduced its fee from 0.8% to 0.25% to make it more competitive—and no fees will be charged until the ETF reaches $1 billion or for the first six months. Balchunas noted, “ARK dropping from 80 basis points to 25 is breathtaking. Fee wars are intense, but this is another level. They had to do at least a little bit. BlackRock at 30 basis points could cause potential instant obliteration for anyone higher than that.”

Filed a few days ago were 19b-4 forms

This comes just a few days after applicants filed amended—and likely final versions—of the 19b-4 forms. New applications were submitted for funds proposed by Grayscale Investments, Valkyrie, ARK 21Shares, and Invesco. The Cboe BZX exchange also filed forms for VanEck, WisdomTree, Pando Asset AG, and Franklin Templeton.

With the latest documents filed, it is now up to the SEC to decide whether to approve the 19b-4 forms and allow the S-1 forms to become effective. If both are approved, trading can begin the next day.