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Fidelity and Galaxy Announce Fees for Proposed Bitcoin ETFs: Fortune

Twitter icon  •  Published il y a 3 mois  •  Hassan Maishera

Fidelity and Galaxy have announced fees for their proposed spot Bitcoin ETFs, with Fidelity charging 0.39% annually while Galaxy will charge 0.59% per year after waiving the first six months.

TL;DR

  • Fidelity and Galaxy have announced fees for their proposed spot Bitcoin ETFs.

  • Fidelity will charge 0.39% to shareholders of its spot Bitcoin ETF while Galaxy will waive the initial six months before charging 0.59% afterward.

Galaxy and Fidelity Reveal their Bitcoin ETF Fees

The issuers of two proposed Bitcoin exchange-traded funds (ETFs) have set the fees they will charge for their Bitcoin ETFs if approved. 

In a report by Fortune on Tuesday, Fidelity Investments will charge 0.39% per year to holders of its Wise Origin Bitcoin Trust. Meanwhile, Galaxy/Invesco will charge 0.59% per year for its BTCO fund after waiving fees for the first six months of the fund’s operation. 

According to Fortune, Jane Street Capital will serve as the “authorized participant” for the Bitcoin ETFs of Fidelity, WisdomTree and Valkyrie. This means that Jane Street Capital will have the power to arbitrage differences in price between these funds’ shares and BTC. 

Meanwhile, Valkyrie named Cantor Fitzgerald as a second authorized participant. However, JPMorgan and Virtu as the authorized participants for both Galaxy/Invesco and BlackRock.

Fortune further revealed that the Bitcoin ETFs will adopt a cash model for creation and redemption. This implies that the authorized participants will not purchase Bitcoin and deposit it into the funds. Rather, they will deposit the cash equivalent for the amount of BTC they wish to deposit and the fund will use the cash to purchase bitcoins. 

The funds adopted this model because the US SEC  pointed out that it doesn’t allow broker-dealers to handle Bitcoin.

While the US SEC is yet to approve a spot Bitcoin ETF, there is growing optimism amongst investors that it could happen in the coming days. The SEC rejected virtually all spot Bitcoin ETFs in the past but has a batch of fresh ones to approve or disapprove. 

At the moment, there are spot Bitcoin applications from Fidelity, BlackRock, WisdomTree, Invesco Galaxy and Bitwise. The regulatory agency has yet to approve any spot Bitcoin ETF application.

 

Author

Hassan Maishera

Hassan is a Nigeria-based financial content creator that has invested in many different blockchain projects, including Bitcoin, Ether, Stellar Lumens, Cardano, VeChain and Solana. He currently works as a financial markets and cryptocurrency writer and has contributed to a large number of the leading FX, stock and cryptocurrency blogs in the world.