Spot Bitcoin ETF: This Issuer May Miss First Wave of Launch

As the crypto community continues to eagerly await the Security and Exchanges Commission’s (SEC) decision on the spot Bitcoin ETF, Hashdex may miss out on the first wave of launch.

Hashdex is Yet to Submit the Latest Amendment

Unlike several other applicants, it appears Hashdex has missed the deadline set by the regulator for submission of its final Form S-1 amendment. Except for a last-minute change, the crypto asset manager might miss out on the race for an ETF offering as the SEC could potentially greenlight the product on January 10.   

Hashdex, known for its services in crypto asset management, had initially announced its intention to launch a spot Bitcoin ETF. However, the delay in submitting the last update to its S-1 amendment filing could impact the timing of its entry into the market. The first movers in the space are likely to benefit from establishing themselves as leaders, attracting early investor interest, and potentially influencing market dynamics.

The S-1 amendment filing is a crucial regulatory requirement for ETFs, outlining key details about the fund’s structure, management, and operations. Any delay in this filing can have cascading effects on the ETF’s launch timeline. As such, investors and industry observers are keenly watching Hashdex’s next steps.

Ongoing Spot Bitcoin ETF War

The announcement of significant fee reductions by Spot Bitcoin ETF applicants has profound implications for the market. Generally, lower fees in the ETF space contribute to increased accessibility, potentially attracting a broader range of investors and fostering more significant market participation.

Also, reduced fees intensify competition among ETF providers. As multiple applicants strive to be the first to launch spot Bitcoin ETFs, offering more competitive pricing becomes a key differentiator. For instance, ARK and 21Shares will forgo the set 0.25% fee for the initial six months post-listing, applicable to the first $1 billion in transactions. 

Similarly, BlackRock, one of the major favorites in the race, has established an initial fee of 0.2% for the initial six months or $5 billion in transactions, with an increase to 0.30% thereafter. These actions underscore the fierce competition among issuers vying for market share in this burgeoning sector. 

Other applicants who would potentially see their products listed include Grayscale Investments, VanEck, BitWise, WisdomTree, and Invesco among others.