Valkyrie, Fidelity appoint ex-FTX delinquents’ employer as AP for spot Bitcoin ETF; fee war begin

• Spot Bitcoin ETF applicants - Valkyrie and Fidelity updated their filings, naming Jane Street as their Authorized Participants.
• Jane Street was the former employer of FTX founder Sam Bankman-Fried and Alameda Research’s Caroline Ellison.
• On the other hand, the ETF fee war has begun, with Fidelity bidding for 39 bps, the lowest in the market so far.

Spot Bitcoin ETF developments continue to headline the crypto market, with one crucial event taking place today. Two of the applicants, set to witness approval during the first wave on January 10 potentially, filed an amended S-1, attaching an interesting name as the Authorized Participant that was also attached with ex-FTX criminals.

FTX-related entity joins the spot Bitcoin ETF market

Fidelity and Valkyrie both filed an amended S-1 on Friday, naming Jane Street as the Authorized Participant. The firm is one of the world’s largest market makers, with the Reported Portfolio Value sitting above $300 billion as of August 2023.

However, more than an ETF trader, their identity in the crypto market is associated with FTX founder Sam Bankman-Fried and Alameda Research’s head Caroline Ellison. Jane Street formerly employed the convicted delinquents in addition to many ex-employees ending up at FTX.

Regardless, Jane Street’s handling of the market turmoil during the 2020 Covid crash kept the bond ETFs liquid. Thus, it makes them one of the better names in the industry when it comes to handling the novel spot Bitcoin ETFs.

ETF fee bids arise

Ahead of the potential spot Bitcoin ETF approvals of January 10, the applicants’ are updating their filings, with more details being revealed with every passing day. One of the key details is the ETF expense ratio, also known as ETF fees. 

Per the data revealed from filings, the fees can be seen ranging from 0.39% to even 0 fees. The Invesco Galaxy Bitcoin ETF will likely incur no fees until the assets under management reach $5 billion. BlackRock will likely set its fees at 80 basis points, and Fidelity will bear the lowest established fees of 39 basis points.

This is crucial to investors in determining the choice of investment product, considering BlackRock could lure investors as being the world’s largest asset manager, but Fidelity is providing the lowest fees at the moment.

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