Fidelity joins race to file updated spot bitcoin ETF forms with SEC, sets fund's sponsor fee at a low 0.39%

Asset management giant Fidelity joined others including BlackRock and VanEck on Friday to submit amended forms to the Securities and Exchange Commission for their proposed spot bitcoin ETFs ahead of a deadline in early January for potential approval. The documents showed what could become a competition for the lowest fee, if the regulator eventually gives the greenlight. 

In its latest update, Fidelity named Jane Street Capital and JP Morgan Securities as authorized participants. It also said its proposed fund would have a sponsor fee of just 0.39%.

Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, said in a post on X that Fidelity's fee was so far the lowest. "Fidelity is officially ready to party," he wrote.

While many firms haven't revealed what they intend to charge yet, Invesco said on Friday in an update that its proposed fund would have a sponsor fee of 0.59%. It also plans to waive that for an initial six-month period. 

"Have to believe BlackRock comes in lower than Fidelity," said Nate Geraci, president of The ETF Store, an advisory firm. "Wonder if these fees clear out any competitors before launch. Gonna be tough to compete at 80bps or whatever."

Amended registration filings

Other asset managers also spent the last business day of the year updating their applications, with the SEC getting fresh filings from Valkyrie, Bitwise, WisdomTree and Franklin Templeton. 

BlackRock also named Jane Street Capital and JP Morgan Securities as its authorized participants on Friday, and Valkyrie named Jane Street Capital and Cantor Fitzgerald. Authorized participants are registered broker-dealers used in the creation and redemption processes that have emerged as a key point of interest in ongoing talks with the SEC. 

The crypto industry has been vying for years for a spot bitcoin ETF, which the SEC has not yet approved.