Bitcoin ETF Applicants Slash Fees in Anticipation of SEC Approvals

Bitcoin ETF applicants, ahead of tomorrow’s expected approvals on January 10, are lowering management fees for their spot Bitcoin ETFs, sparking a bidding war that amplifies the fear of missing out (FOMO) among investors.

With up to 13 providers anticipating approval from the US Securities and Exchange Commission (SEC), recent fee adjustments by major players signal a strategic move to attract attention and capitalize on the growing excitement in the market.

In response to the imminent approval of spot Bitcoin ETFs, significant providers are revising their proposed management fees to gain a competitive edge in a market where differentiation is crucial. Invesco, a prominent player, recently filed with the SEC to lower its proposed fee from 0.59% to 0.39% annually.

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

Following suit, Valkyrie adjusted its fee to 0.49% from the initial 0.8%, while WisdomTree took a more substantial step by lowering its proposed fee to 0.2%. WisdomTree’s additional move to waive fees for the first $1 billion in assets under management (AUM) is viewed as a strategic marketing tactic to generate FOMO around its ETF launch.

Bitcoin ETF Applicants Strategies to Capture Investors’ Attention

Beyond fee reductions, ETF providers are employing various strategies to capture investor attention and amplify anticipation for their spot Bitcoin ETFs. Bitwise, ARK/21Shares, Invesco, and iShares (BlackRock) have all proposed zero or lower fees for the initial months or tranches of AUM. These tactics aim to attract investors and generate market excitement, establishing a competitive environment within the cryptocurrency space.

🔸 Spot bitcoin ETFs may bring $50-100 billion of inflows in 2024, says Standard Chartered Bank

As a result, the price of bitcoin could rise to $200,000 by the end of 2025, according to the bank.https://t.co/x3CSYdk9Uo

— *Walter Bloomberg (@DeItaone) January 8, 2024

Analysts and market participants speculate that the SEC may approve spot Bitcoin ETFs as early as Thursday. This anticipation has led to a swift surge in FOMO within the Bitcoin market. On Monday, Bitcoin experienced a noteworthy 7% one-day performance, soaring above $47,000 for the first time since April 2022.

The excitement is not confined to short-term price movements; it extends to the potential approval as a catalyst for substantial long-term institutional investment into Bitcoin.

As the bidding war and fee adjustments unfold among potential spot Bitcoin ETF providers, the cryptocurrency market is witnessing competition for investor funds and a preview of possible transformative shifts in institutional investment strategies.

🔥 #Bitcoin ETFs to start trading on Thursday – VanEck CEO

— Coinwaft (@coinwaft) January 9, 2024

The potential approval of spot Bitcoin ETFs is generating heightened enthusiasm within the market. As VanEck’s CEO hints at possible ETF approvals in a CNBC appearance, Bitcoin traders are gearing up to closely monitor the volume of inflows that new spot Bitcoin ETF products could attract post-approval.