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Bitcoin ETF- This move by Fidelity to reduce fees to 0.25% and extend a fee waiver to 0% through July 31 reflects the intensifying competition in the spot Bitcoin exchange-traded fund (ETF) arena, as major issuers seek to attract investors with more competitive and cost-effective offerings.
Bitcoin ETF Issuers Slash Fees in Ongoing Competitive Shift
This industry-wide response, with 5 out of the 11 issuers, including Fidelity, revising their fee structures or providing temporary waivers, comes in the wake of feedback received from the U.S. Securities and Exchange Commission on January 8th, indicating a proactive approach to address regulatory considerations and enhance the appeal of their Bitcoin ETF offerings.
On a more serious note… here's all the firms doing the hard work behind the scenes. @Fidelity has lowered their fees all the way down to 25bps and is also offering a fee waiver to 0% through July 31, 2024 pic.twitter.com/Ao0WmICBFh
— James Seyffart (@JSeyff) January 9, 2024
These strategic fee reductions by Bitwise and WisdomTree, lowering fees to 0.20% and 0.30% respectively, coupled with temporary waivers to 0% for 6 months or up to 1 billion, signify a concerted effort among Bitcoin ETF issuers to position themselves competitively in the evolving market landscape.
SEC Security Breach: False Approval Notice Posted
The false announcement of approval for listing and trading Bitcoin ETFs, posted on the Commission’s official social media account, not only raises concerns about the security and integrity of official communication channels but also adds to the heightened anticipation within the crypto community for the SEC’s final decision on spot Bitcoin ETFs.
The @SECGov twitter account was compromised, and an unauthorized tweet was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.
— Gary Gensler (@GaryGensler) January 9, 2024
Following a preliminary investigation, X (formerly known as Twitter) confirmed the breach, attributing it to an unidentified individual gaining control over a phone number associated with the SEC account through a third party.
This incident prompted SEC Chair Gary Gensler to address the situation, stating, “The SEC Twitter account was compromised, and an unauthorized tweet was posted.
The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.” Additionally, X’s safety team noted that the compromised account did not have two-factor authentication enabled at the time of the breach, adding another layer of concern regarding security measures.
This turn of events has led to widespread frustration and disappointment among users who criticize the perceived unprofessionalism in the SEC’s operation.
Despite a brief surge in Bitcoin price to $48,000 following the false approval notice, the subsequent clarification caused a drop below the $46,000 level. As of now, according to CoinMarketCap, Bitcoin is currently trading at $45,953, representing a 1.8% decrease from 24 hours ago.
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