Bitcoin, Ethereum, Dogecoin Soar As Low-Fee ETF Competition Heats Up: Analyst Says 'Upcoming Bull Cycle Is Likely Going To Be Glorious'

Major cryptocurrencies spiked on Monday evening amid growing anticipation for the approval of a spot-based BTC exchange-traded fund (ETF).

What Happened: The rally occurred as investors eagerly await a regulatory decision for the first spot-based bitcoin exchange-traded funds in the U.S., expected sometime this week. 

Most market observers anticipate approval, with bulls predicting that these funds would significantly broaden the investor base for the asset and attract substantial inflows.

Today, major asset management companies like BlackRock, Fidelity, and Grayscale submitted updated S-1 filings to the Securities and Exchange Commission (SEC). Multiple issuers also disclosed the fees they would charge investors.

Two days before the SEC is expected to approve one or more spot Bitcoin ETFs, all potential issuers have disclosed a crucial detail about their product: the fee, and they vary significantly.

Among the 13 proposed ETFs awaiting SEC approval or rejection, the fee they charge is a key factor in setting them apart from one another. Lower fees, calculated as a percentage of the fund’s assets, mean more returns for investors. 

Bitwise, a crypto native fund manager, stands out by charging the lowest fee at 0.24% after a 6-month period of no fees. However, some of its rivals are not far behind. Ark and 21Shares plan to charge 0.25%, while VanEck and Franklin list their fees at 0.25% and 0.29% respectively.

BlackRock, the world’s largest asset manager, has set its fee at 0.30%, which is lower than what some experts had anticipated, considering its size and reputation could have allowed it to charge more and still remain highly competitive in popularity.

Top Gainer (24 Hour)

The global cryptocurrency market cap now stands at $1.63 trillion, showing a slight decline of 1.71% in the past 24 hours.

On Monday, major stock averages showed an increase, mainly driven by the performance of technology shares, as Wall Street aimed to bounce back from a challenging week. The S&P 500 concluded with a 1.41% gain, closing at 4,763.54, while the Nasdaq Composite surged by 2.2%, ending the day at 14,843.77, marking the tech-heavy index’s most substantial one-day gain since Nov. 14.

This week, traders are anticipating increased clarity regarding potential rate cuts by the Federal Reserve. The release of the December consumer price index on Thursday and the producer price index on Friday will provide crucial insights into whether the central bank’s efforts to stabilize inflation at its 2% target are yielding results.

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Analyst Notes: Cryptocurrency analyst Michael Van de Poppe said that a Bitcoin Spot ETF is on the horizon for approval, "which is true legitimacy for an asset created out of the Financial Crisis of 2008 only existing for 15 years. The upcoming bull cycle is likely going to be glorious."

Cryptocurrency analyst Carl from the Moon said "If the ETF is denied on Wednesday then that would be the biggest manipulation" of Bitcoin so far.

According to on-chain analyst Ali Martinez, regardless of the outcome of the Bitcoin ETF, we can look forward to another bullish trend this year: The BTC Halving. "It has historically been a catalyst for major price surges."

Photo by Igor Faun on Shutterstock

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