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BlackRock and VanEck File Modified S-1 Forms for Bitcoin ETFs

BlackRock and VanEck file modified S-1 forms

  • BlackRock and VanEck have filed modified S-1 forms for their Bitcoin ETF applications.
  • These changes follow the final comments from the Securities and Exchange Commission (SEC).
  • The minor changes include clarifications on the insolvency of authorized participants and trading counterparties.

Detailed clarifications before potential approval

Asset managers BlackRock and VanEck have recently submitted modified S-1 forms for their Bitcoin spot ETFs, in response to the final comments from the SEC.

These adjustments, although minor, are significant for the progress of the applications. They include clarifications on the potential consequences of the insolvency of authorized participants (AP) or trading counterparties in Bitcoin trading.

They also highlight the potential conflicts of interest that these issues may generate, as well as issuing warnings for potential investors regarding liquidity-related risks.

The fee war declared among Bitcoin ETF applicants

A notable aspect of the modified forms is the presentation of fee structures, a key element in attracting investors. Bitwise offers the lowest fixed rate at 0.24%, with 0% for the first 6 months. Ark/21Shares and VanEck closely follow with 0.25% fees, and BlackRock with 0.3%.

Grayscale, on the other hand, has recently announced a reduction in fees from 2% to 1.5%

Analyst Eric Balchunas, specializing in ETFs at Bloomberg, highlighted that the short 24-hour interval, during which the forms were filed, SEC comments received, and new versions of the forms submitted, demonstrates the commitment of all parties involved to progress swiftly with this project.

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