Spot Bitcoin ETF Bidding War Heats Up as Applicants Drop Proposed Management Fees Ahead of Expected SEC Approvals – Where Next for the BTC Price?

Last updated: January 8, 2024 23:23 EST . 3 min read Disclosure: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. By using this website, you agree to our terms and conditions. We may utilise affiliate links within our content, and receive commission.

Bitcoin (BTC) Token on a Laptop / Source: Adobe

Various ETF providers are dropping the management fee they plan to charge investors who buy their spot Bitcoin ETFs, as a bidding war heats up ahead of the expected approvals by Wednesday.

Up to 13 ETF providers may be given the green light to launch spot Bitcoin ETFs by the US Securities and Exchange Commission (SEC) as soon as Wednesday.

Invesco just dropped the proposed fee on its ETF to 0.39 annually from 0.59, as per an SEC filing.

Valkyrie just dropped its proposed fee to 0.49 from 0.8.

And WisdomTree just dropped its proposed fee to 0.2.

WisdomTree also announced that it will waive fees for the first $1 billion in assets under management (AUM).

Presumably, this move by WisdomTree is a marketing stunt to try and engineer great fear of missing out (FOMO) around its ETF launch.

Other ETF providers are employing similar tactics to attract investor attention to their proposed spot Bitcoin ETFs.

Bitwise, ARK/21Shares, Invesco and iShares (BlackRock) are all proposing either zero or lower fees for the first few months/tranch of AUM.

Regardless of long term plans, the intensity of this bitcoin ETF bidding war is telling me the issuers believe that the winner’s low fees will be compensated by HUGE $$ inflows. pic.twitter.com/tzEmHzPsWU

— Tuur Demeester (@TuurDemeester) January 9, 2024

Bidding War Fuels Bitcoin (BTC) FOMO

Some analysts and market participants betting that spot Bitcoin ETFs could go live as soon as Thursday.

VanEck’s CEO was recently on CNBC touting this view.