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Fidelity Reduces the Bitcoin ETF Fee to 0.25%. Could It Ensure a Competitive Edge?

Fidelity's strategic move in the ETF arena 

In a move to capture the cryptocurrency market, Fidelity Investments has announced a significant reduction in its proposed spot Bitcoin ETF fee, now standing at a competitive 0.25%. This adjustment, detailed in a recent S-1 form revision, represents a substantial decrease from the previous rate of 0.39% set in December last year. Additionally, Fidelity is offering a fee waiver to market participants, effective until July 31, further sweetening the deal for investors.

This strategic pricing maneuver positions Fidelity at the forefront of the U.S. race to launch the first line of spot Bitcoin ETFs. Amidst intense competition, asset management giants like Bitwise, WisdomTree, and Valkyrie are also aggressively lowering fees, as observed in their latest filings.

Market reaction to SEC's security breach 

The landscape of bitcoin ETF approvals was unexpectedly shaken following a security incident at the U.S. Securities and Exchange Commission (SEC). An unauthorized breach into the SEC's X account led to the circulation of a misleading tweet, falsely claiming the approval of spot Bitcoin ETFs. This misinformation briefly impacted bitcoin's value, causing a drop to approximately $45,880 from its earlier peak above $47,000.

Despite this disruption, industry experts remain optimistic about the regulatory decisions. Jan van Eck, CEO of VanEck – another firm awaiting ETF approval – anticipates a positive outcome, with expectations set for trading to commence shortly. Bloomberg Intelligence analyst James Seyffart echoed this sentiment, suggesting that the decision timeline is likely to remain unaffected, with potential approvals and trading set to begin as scheduled.

Seyffart said:

“We're still expecting potential approvals tomorrow and for potential trading to begin Thursday”