United

Bitcoin ETF

Spot

As the potential approval of several spot Bitcoin exchange-traded funds (ETF) by the United States Securities and Exchange Commission (SEC) approaches, BlackRock has made a significant move by <a href="https://www.reuters.com/technology/blackrock-sets-030-fee-proposed-spot-bitcoin-etf-2024-01-08/#:~:text=BlackRock%20set%20a%20fee%20of,the%20spot%20bitcoin%20ETF%20market." target="_blank" rel="noopener nofollow">announcing</a> a comparatively low fee for its upcoming spot Bitcoin ETF earlier today. 
<h2 id="blackrock-takes-competitive-edge-in-spot-bitcoin-etf-race">BlackRock Takes Competitive Edge In Spot Bitcoin ETF Race</h2> 
In a report published by Reuters in the early hours of Monday, the asset management giant announced that it has now set the fee at 0.20 percent for its iShares Bitcoin Trust, then increasing its fees to 0.30 positioning itself competitively against its rivals. 
<img loading="lazy" decoding="async" class="wp-image-273193 size-large" src="https://bitcoinist.com/wp-content/uploads/2024/01/bitcoin-blackrock-bitcoin-etf-btc-btcusdt.jpg?w=764&amp;resize=764%2C380" alt="bitcoin blackrock bitcoin etf btc btcusdt" width="764" height="380" srcset="https://bitcoinist.com/wp-content/uploads/2024/01/bitcoin-blackrock-bitcoin-etf-btc-btcusdt.jpg?w=764&amp;resize=764%2C380 764w, https://bitcoinist.com/wp-content/uploads/2024/01/bitcoin-blackrock-bitcoin-etf-btc-btcusdt.jpg?w=640 640w, https://bitcoinist.com/wp-content/uploads/2024/01/bitcoin-blackrock-bitcoin-etf-btc-btcusdt.jpg?w=360 360w, https://bitcoinist.com/wp-content/uploads/2024/01/bitcoin-blackrock-bitcoin-etf-btc-btcusdt.jpg?w=750 750w" sizes="(max-width: 764px) 100vw, 764px" data-recalc-dims="1"> 
This strategic pricing undercuts the fees of Valkyrie Investments and Fidelity, which stand at 0.80 percent and 0.39 percent, respectively, for their spot BTC ETF offerings. 
This latest report suggests that the race to launch a successful spot Bitcoin ETF in the US has intensified, with over a <a href="https://bitcoinist.com/goldman-sachs-eyes-participant-role-bitcoin-etfs/" target="_blank" rel="noopener ">dozen contenders</a>, including crypto natives and traditional financial powerhouses. 
Among these, VanECK and ARK 21Shares Bitcoin ETF also stand out, with its fee set at 0.25 percent, as announced on the same day. These developments indicate a growing trend of competitive pricing strategies among spot ETF providers to capture a larger share of the burgeoning crypto investment market. 
<img loading="lazy" decoding="async" class="size-medium" src="https://www.tradingview.com/x/iYINOpmc/" alt="Bitcoin (BTC) price chart on TradingView" width="2770" height="1556"> 
<h2 id="approaching-sec-deadline-spurs-bold-predictions">Approaching SEC Deadline Spurs Bold Predictions</h2> 
While the rivalry for the BTC spot ETF with the lowest prices continues, the <a href="https://bitcoinist.com/sec-throws-cold-water-on-bitcoin-etf-hopes/" target="_blank" rel="noopener ">US SEC</a>, led by Chair Gary Gensler, has set a pivotal deadline for spot BTC ETF issuers. This decision, which requires final revisions to pending S-1 applications by January 8, 2024, has sparked a flurry of predictions in the crypto community. 
Bloomberg <a href="https://www.bloomberg.com/news/articles/2024-01-08/crypto-s-bitcoin-etf-hopefuls-wait-for-us-sec-approval-by-january-10-deadline" target="_blank" rel="noopener nofollow">reports</a> that the US SEC could allow trading of spot BTC ETFs as soon as January 11, making this a potentially transformative week for the crypto investment landscape. 
Nate Geraci, the president of the ETF store, also <a href="https://x.com/NateGeraci/status/1744164165521182894?s=20" target="_blank" rel="noopener nofollow">projected</a> that the US SEC will give its <a href="https://bitcoinist.com/39-predict-spot-bitcoin-etf-approval-by-sec/" target="_blank" rel="noopener ">nod of approval</a> to spot Bitcoin ETF applications by January 10. His predictions include approvals for 19b-4s (exchange rule changes) and registration statements. 
<blockquote class="twitter-tweet"> 
 2) Obviously, SEC’s approval vote (which sounds likely on Wednesday)… 
 SEC Division of Trading &amp; Markets must approve 19b-4s (exchange rule changes). 
 Division of Corporate Finance must sign-off on S-1s (registration statements). 
 Key is 19b-4 approval orders, which I expect. <a href="https://t.co/D1BgKTdfau" target="_blank" rel="noopener nofollow">pic.twitter.com/D1BgKTdfau</a> 
 — Nate Geraci (@NateGeraci) <a href="https://twitter.com/NateGeraci/status/1744164552676102522?ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">January 8, 2024</a>
</blockquote> 
According to Geraci, the immediate aftermath of the SEC’s approval could see the launch of these spot ETFs from various applicants. Matthew Sigel, the head of digital asset research at <a href="https://bitcoinist.com/setting-stage-crypto-surge-spot-bitcoin-etfs-impact/" target="_blank" rel="noopener ">VanEck</a>, disclosed that BlackRock could potentially invest a substantial $2 billion from existing Bitcoin holders into spot BTC ETFs. 
<blockquote class="twitter-tweet"> 
 VanEck’s Matthew Sigel just said he’s heard from a well placed source that BlackRock has $2 billion of capital lined up from existing bitcoin holders that want to rotate into spot bitcoin ETFs in week one <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f440.png" alt="👀" class="wp-smiley" style="height: 1em; max-height: 1em;"> <a href="https://t.co/rP23TfO7iT" target="_blank" rel="noopener nofollow">https://t.co/rP23TfO7iT</a> 
 — Tim Copeland (@Timccopeland) <a href="https://twitter.com/Timccopeland/status/1743358421540208655?ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">January 5, 2024</a>
</blockquote> 
Furthermore, Geraci highlights the potential impact on key players like ARK Invest and Grayscale Investments. The ETF store president <a href="https://x.com/NateGeraci/status/1744165083834368458?s=20" target="_blank" rel="noopener nofollow">suggests</a> that ARK Invest could channel over $200 million into these ETFs, replacing GBTC in ARKW. 
For Grayscale, the approval could <a href="https://x.com/NateGeraci/status/1744165500744016034?s=20" target="_blank" rel="noopener nofollow">elevate</a> its standing significantly, placing it among the top 60 ETFs by assets under management, according to Geraci. 
Featured image from Unsplash, Chart from TradingView

BlackRock’s Strategic Play: Undercutting Rivals With Lower Spot Bitcoin ETF Fees

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