The Crypto Roundup: 03 January 2024 | CryptoCompare.com

Fidelity Investments and Galaxy/Invesco, the issuers of two proposed spot Bitcoin exchange-traded funds (ETFs), have started setting the fees they will charge if their funds are to be approved.

Fidelity’s Wise Origin Bitcoin Trust will charge investors a 0.39% annual fee, while Galaxy/Invesco’s BTCO fund will have a slightly higher fee of 0.59%, with a six-month waiver at the start, according to data from a December 29 court filing.

Moreover, Jane Street Capital has been designated as the “authorized participant” for the Bitcoin ETFs from Fidelity, WisdomTree, and Valkyrie. The role allows Jane Street to manage price disparities between the funds’ shares and Bitcoin.

Valkyrie has also partnered with Cantor Fitzgerald as a second authorized participant, while Galaxy/Invesco and BlackRock are working with both JPMorgan and Virtu.

Instead of buying and depositing Bitcoin into the funds, authorized participants will use cash to create and redeem ETF shares. The fund will then use the cash to buy BTC, in what is the preferred method of the U.S. Securities and Exchange Commission (SEC), which does not want broker-dealers to deal with Bitcoin.

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• Source: https://www.cryptocompare.com/email-updates/daily/2024/jan/03/