Invesco Galaxy and Others Beat SEC’s Final Bitcoin ETF Amendment Deadline

Owing to the announcement made by the United States Securities and Exchange Commission (SEC) a few days ago about a deadline for the submission of the final amendment for spot Bitcoin ETF S-1 filing, seven investment asset management firms rushed to beat the time limit. Invesco Galaxy, Bitwise, WisdomTree, Fidelity, and other ETF filers joined the rush at the last minute. 

This was after BlackRock, VanEc, and Valkyrie had submitted their amendments.

SEC States Dec. 29th As the Deadline for Bitcoin ETF Amendment 

A few days ago, the SEC released a statement asking all ETF filers to submit the final amendment of their S-1 filing before December 29th if they intend to bag the first wave of potential approval from the agency. The news triggered an influx of revised spot Bitcoin ETF applications.

Altogether, the SEC has received revised S-1 filings for spot Bitcoin ETFs from BlackRock, Van Eck, Grayscale, Bitwise, WisdomTree, Invesco Galaxy, Fidelity, ARK Invest, Valkyrie, Franklin, Hashdex, Global X ETFs, and Pando Asset.

Bitcoin ETF Filers Choose Authorized Participant 

In the new filings, Invesco Galaxy, Fidelity, and WisdomTree revealed their authorized participants. 

For Fidelity and WisdomTree, Jane Street Capital was chosen while Invesco Galaxy decided to go with Virtu and top financial company JPMorgan. Bitwise had not named any authorized participants but the firm hinted at an anonymous entity showing interest in purchasing up to $200 million in shares of the potential ETF.

Even with the SEC’s advice urging ETF issuers to adopt the “cash create” redemption model, WisdomTree is bent on maintaining the “in-kind” creation and redemption model. Grayscale’s filings included a line related to cash as well as some pages of risk disclosures had been removed.

Price War Amongst Bitcoin ETF Filers 

Senior Bloomberg ETF analyst Eric Balchunas discovered that tough competition is beginning to brew amongst the potential ETF issuers starting with a price war. Specifically, the duo Invesco Galaxy has decided to waive its fee for the first six months after it receives approval and the first $5 billion in assets. On the other hand, Fidelity has its fee marked at 0.39%.

Balchunas believes that once this price war starts there will be no end to it. Other competitions are likely to spring up in the coming weeks after the SEC greenlights the applications.