The race to launch a Bitcoin ETF reached a bureaucratic climax on Friday as some of Wall Street's biggest firms completed paperwork for their offerings ahead of widely expected, potentially impending SEC action.
Invesco, Fidelity and BlackRock, as well as crypto-focused firms Valkyrie and Bitwise, revealed key details including the companies they would partner with and the fees their Bitcoin ETFs would charge if approved. Their so-called S-1 filings are now “ready to celebrate,” as Bloomberg ETF analyst Eric Balchunas said on X.
The party could start in a few days. ETF watchers expect the SEC to lift its year-long block on a spot Bitcoin ETF in early 2024. Over a dozen companies are hoping to break into the new market by selling their own version of the easy-to-invest product to investors who would prefer to keep their Bitcoin exposure in their brokerage accounts alongside stocks and bonds.
Friday's rush of filings suggests companies aren't taking any chances on the timing. Bloomberg analysts said the SEC will likely approve multiple issuers at once to avoid picking favorites. This means that the eager issuers get all the ducks in a row so that they can belong to the first group.
BlackRock triggered the flurry of filings at the end of the week by declaring JPMorgan and Jane Street as its authorized participants, which are partner firms that handle financial backends related to an ETF. Within a few hours the others followed.
Since one Bitcoin ETF is little different from the next, the battle could come down to fees. According to Balchunas, Invesco and its partner Galaxy Digital announced that they will waive fees for the first six months and the $5 billion invested. That undercut Fidelity, which wants to charge 39 basis points.
But size also plays a role. Bitwise announced that it has already committed $200 million in seed capital to its ETF, displacing BlackRock, which has committed $10 million. Investors could also choose another simply based on the popularity of one fund.