4 Critical Bitcoin ETF Factors To Watch Ahead Of SEC’s Imminent Decision

Nate Geraci, President of ETFStore, an investment advisor, highlighted the key areas to watch in the final stages of the Bitcoin (CRYPTO: BTC) ETF race.

Here is what investment professionals are watching and why you should be watching it too.

1. The Fee Wars: Happy Days For Cryptocurrency Investors

A full-blown “fee war” erupted on Monday morning, as the ETF applicants tried to undercut each other on their respective ETF management fees. BlackRock Inc. (NYSE: BLK), widely seen as the frontrunner among applicants, leads with a 0.20% fee for the first year or the first $5 billion. Others like ARK21 (0.25%), Bitwise (0.24%), Franklin (0.29%), Fidelity (0.39%), Wisdom Tree (0.50%), Valkyrie (0.80%) and Hashdex (0.90%) partially cut or waived fees in an effort to compete. Grayscale lowered its fee from 2% to 1.50%, distinctly higher than other applicants. 

Senior Bloomberg ETF Analyst Eric Balchunas speculated whether cryptocurrency exchanges will lower their fees in an effort to compete.

Also Read: Fee War Erupts Among Bitcoin ETF Applicants: Could ‘Wave Of Capital’ Inflow Make It The Most Successful ETF Launch Ever?

2. FOMO Factor: Institutions Hold The Key To Mass Adoption

Geraci noted how industry experts have been hearing rumors:

VanEck’s Matthew Sigel just said he’s heard from a well-placed source that BlackRock has $2 billion of capital lined up from existing bitcoin holders that want to rotate into spot bitcoin ETFs in week one 👀 https://t.co/rP23TfO7iT

— Tim Copeland (@Timccopeland) January 5, 2024

Such inflows could position the launch of the spot Bitcoin ETF among the most successful ETF launches in history. The result would be mainstream legitimacy and, most probably, another significant price surge, as ETF issuers collect institutional inflows. Small wonder the SEC cautioned of “FOMO” ahead of the likely approval. Gary Gensler is warning investors against “fraudsters” in the space, but greenlighting the ETFs may only accelerate the digital asset hype train. 

Also Read: SEC’s ‘Say No To FOMO’ Warning Reissued Ahead Of Potential Bitcoin ETF Greenlight

3. The Regulatory Rumble: Are Institutions Your Friend?

Established players like Jamie Dimon, CEO of JPMorgan (NYSE: JPM), are authorized participants in a possible ETF launch, despite the bank’s public tough…