BlackRock and VanEck Submit Revised Applications for Bitcoin ETFs

BlackRock and VanEck have resubmitted their applications for spot bitcoin exchange-traded funds (ETFs) to the Securities and Exchange Commission (SEC). The SEC had previously provided feedback to the applicants, but these comments were focused on minor details and were not expected to hinder the applications.

The revised filings from BlackRock and VanEck have addressed the issues raised during the initial commentary phase. One important area of concern was how to handle situations where an authorized participant or bitcoin trading counterparty becomes insolvent. The filings now include language outlining the actions that would be taken in such scenarios.

Another issue that was addressed is the potential conflicts of interest. The filings now acknowledge that conflicts may arise due to the issuers’ roles as investment advisers and sponsors of the ETFs. To address this, the issuers have committed to implementing measures such as independent directors and disclosure requirements.

The proposed Bitcoin ETFs from Bitwise, Ark/21Shares, and BlackRock also boast lower fee structures, making them more appealing to institutional investors who prioritize cost efficiency and transparency. Bitwise’s offering stands out with a fixed fee of 0.24%, while Ark/21Shares follows closely behind with a fee of 0.25%. BlackRock’s fee is slightly higher at 0.3%, but still significantly lower than the fees charged by some existing ETFs.

Tags: Bitcoin ETF.