In a significant development in the cryptocurrency investment sphere, Invesco Galaxy has submitted a new Bitcoin spot Exchange-Traded Fund (ETF) S-1 filing to the United States Securities and Exchange Commission (SEC). This move comes as part of a broader rush among major financial firms to launch Bitcoin ETFs, with a flurry of last-minute filings observed on December 29.
Invesco Galaxy’s filing, standing out among the crowd, reveals an intriguing approach to fees. The firm plans to waive all sponsorship fees for the trust’s first $5 billion in assets within six months of the trust company’s stock being listed on the exchange. Following this period, a 0.59% annual sponsorship fee will be introduced. This fee structure is a tactical move, positioning Invesco Galaxy competitively against other firms like Fidelity, which has set its fee at 0.39%.
The ETF’s authorized traders, as designated in the filing, are Virtu and JPMorgan. This step is a crucial part of the offering, ensuring the smooth operation of the ETF upon approval.
The broader context of this development is the anticipation of the SEC’s possible green light for spot Bitcoin ETFs in early 2024. This scenario has prompted over a dozen firms, including big names like BlackRock, Fidelity, and Valkyrie, to complete their S-1 filings, aiming to be part of the first wave of approved Bitcoin ETFs. The approval of these ETFs is expected to open up new avenues for investors, offering them an easily investable product that can be included in their brokerage accounts alongside traditional assets like stocks and bonds.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
