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Fidelity Set to Slash Fees for Bitcoin ETF Amid SEC Anticipation

In the race to secure the elusive spot Bitcoin Exchange-Traded Fund (ETF) approval, financial giants are deploying strategic maneuvers. Fidelity Investments has thrown its hat into the fee reduction ring, aiming to significantly lower the expense ratio for its proposed ETF, according to a revised S-1 form submitted on Tuesday.

The company had previously slated the fee at 0.39% as of December 29. However, the revised plan aims to drop this fee to a competitive 0.25%. Additionally, Fidelity plans to waive fees for market participants until July 31, a move undoubtedly intended to attract potential investors and garner attention in a highly competitive landscape.

This fee adjustment by Fidelity mirrors a broader trend among U.S. contenders vying for the title of the first line of spot Bitcoin ETFs. Bitwise, WisdomTree, Invesco, and Valkyrie, among others, have also engaged in a feverish fee-slashing frenzy, as detailed in their recent filings this week. The motivation behind this fee-cutting competition is crystal clear: to entice investors and gain an edge as the SEC’s decision on spot Bitcoin ETFs looms large.

The Securities and Exchange Commission is expected to make a crucial announcement on Wednesday, potentially paving the way for the highly anticipated spot Bitcoin ETFs. Jan van Eck, CEO of VanEck and an applicant for a spot Bitcoin ETF, expressed optimism, stating to CNBC on Tuesday that he anticipates his company’s proposed fund to commence trading as early as Thursday.

However, the road to this groundbreaking decision has not been without its share of unexpected twists. The SEC revealed that its X account was hacked earlier on Tuesday. A falsified post claiming the approval of spot Bitcoin ETF applications was disseminated via this compromised account, triggering a rapid plummet in the price of Bitcoin. The cryptocurrency dipped to around $45,880 at the time of publication from its earlier surge above $47,000 on Monday.

The fallout from this misinformation incident serves as a stark reminder of the volatility and susceptibility of cryptocurrency markets to external influences. As the industry eagerly awaits the SEC’s decision, the competitive landscape for spot Bitcoin ETFs continues to evolve rapidly, with fee reductions becoming a significant battleground among contenders seeking to seize the advantage.

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