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Markets: 940
Marketcap: $ 2.06 T(0.18%)
24h Vol: $ 77.17 B
BTC Dominance: 48.69%

Spot Bitcoin ETF Issuers in Fee War as SEC Approval Nears

Key Takeaways

Several major players are seeking to issue the first Bitcoin exchange traded fund (ETF) in the United States, but regulators have so far rejected all applications amid worries over market volatility and manipulation. However, following recent court decisions invalidating past SEC decisions, analysts believe approval is now imminent. As a result:

  • Issuers are trying to attract investors with lower fees, ranging from 0.24% to 0.5% initially
  • Some issuers are waiving fees for the first few months to build market share quickly
  • Pressure is mounting on the SEC to approve a Bitcoin ETF after recent court losses
  • Investors’ anticipation of an ETF approval helped push Bitcoin prices above $47,000, an 8% gain
  • An SEC approval could potentially trigger further Bitcoin price gains

Fee War Heats Up

Crypto ETF issuers are engaging in a fee war as anticipation grows that the SEC may soon approve the first U.S. Bitcoin spot ETF. Proposed annual management fees for the ETFs range from 0.24% to 0.5% initially, with Bitwise currently offering the lowest long-term rate at 0.24%. Other issuers include:

SEC Approval Nears

Analysts believe the SEC is under increasing pressure to approve a spot Bitcoin ETF, especially after WisdomTree and VanEck listed their products on the DTCC, suggesting they expect approval soon. The SEC faces a January 10th deadline for Ark and 21Shares’ application. Recent court decisions invalidating previous SEC denials may also force the SEC to provide new justifications for denying ETF approvals.

Bitcoin Price Reaction

The anticipation around a potential Bitcoin ETF approval contributed to Bitcoin’s price surging above $47,000 — an 8% gain in the past 24 hours alone. An SEC approval is speculated to potentially trigger an even more bullish trend for Bitcoin’s price.

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