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The anticipation for the decision from the United States Securities and Exchange Commission on spot Bitcoin (BTC) exchange-traded funds (ETFs) continues as multiple applicants filed their final S-1 form amendments on Jan. 8.

Valkyrie was the first company to file its final S-1 amendment, followed by WisdomTree, BlackRock, VanEck, Invesco and Galaxy, Grayscale, and ARK Invest and 21Shares.

Among the amendments, many of the applicants have also included lower fees, raising the bar of competitiveness between the various ETF offerings.

The lowest sponsor fee for the currently filed ETFs is from Bitwise, with no fee for the first six months and the first $1 billion in assets, followed by a 0.24% fee. This is followed by ARK Invest and 21Shares also listing no fee for the first six months or until $1 billion in assets, after which they will enforce a fee of 0.25%.

Bloomberg market analyst Eric Balchunas called the drop in ARK and 21Shares fees from 0.80% to 0.25% breathtaking. Balchunas said, The fee wars are intense, but thats another level.

VanEck listed a 0.25% fee, Franklin a 0.29% fee and Fidelity a 0.39% fee.

Global asset manager BlackRock set its fee for the iShare ETF at 0.20% for the first 12 months or until the first $5 billion, then hiked it up to 0.30% as the ongoing fee.

On the higher end of the fees, Wisdomtree comes in at 0.5%, Galaxy Invesco offered the first six months with no fee, followed by a 0.59% fee, Valkyrie has a 0.80% fee, and Hashdex has a sponsor fee of 0.90%.

Grayscale dropped its fee from 2% to its newly listed fee of 1.5%, which currently comes in as the most expensive of the pack.

Related: SEC reissues crypto FOMO warning amid hope for spot Bitcoin ETFs

Research and market analyst James Seyffart posted on X (formerly Twitter) to be mindful that these are not finalized and said he wouldnt be surprised by even more fee drops.

Amid all the revisions to spot Bitcoin ETFs, Balchunas said it would be interesting to see if this influences cryptocurrency exchanges to respond with their own fee cuts before its too late.

Balchunas also posted a reminder that the temporary fee waivers historically havent moved the needle much and that advisors tend to focus on the regular fees because they are long-term investors.

However, he did say it could possibly matter in this case, given that the ETFs all do the same thing.

As the final amendments come in, the next stage in the decision-making process is anticipated to be a vote by SEC commissioners. Markets have been forecasting the debut of the ETF on or around Jan. 11.

Magazine: Lawmakers fear and doubt drives proposed crypto regulations in US

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Spot Bitcoin ETF fee war begins, issuers amend S-1 filings with lower sponsor fees - Cointelegraph

The week ahead is one of the most highly anticipated in cryptocurrency history: the week the U.S. could finally green light a spot bitcoin exchange traded fund. Momentum around a decision next week when the Securities and Exchange Commission is expected to approve or deny the Ark 21 Shares Bitcoin Trust has been building, sending bitcoin 60% higher over the past three months. The SEC is widely expected to approve several spot bitcoin ETF applications at the same time, if it approves any at all, to even the competitive playing field. There are 13 companies waiting in line, including BlackRock, Invesco, Fidelity, Grayscale, Ark, Bitwise and VanEck. Quite Epic "It really is quite epic," said Noelle Acheson, economist and author of the "Crypto is Macro Now" newsletter. "Just a few months ago, most people that I knew were saying it's not going to happen now it looks like it actually will." "Of course, it's not a done deal," she added. "We can't say [with 100% certainty] that we're going to get it next week, but it would be a really, really aggressive move from the SEC were they to pull the rug." The bitcoin rally faltered this week even as anticipation mounted. But enthusiasm isn't about the ETF approval per se, investors say. It's about the flow of money into the ETFs once they're on the market. "The sustainability of this rally rests on market appreciation resulting from the potential for new assets to enter the cryptocurrency system from the pending launch of spot Bitcoin ETFs," Kenneth Worthington, an analyst at JPMorgan, said in a note this week. "We are keen to see the impact of this decision as it will be a key test to the durability and resiliency of the cryptocurrency markets." Bull case The bull case rests on regulated bitcoin ETFs bringing a wave of new institutional demand to bitcoin at the same time as supply shrinks next spring when another Bitcoin halving is scheduled, lowering incentives for bitcoin miners and potentially sending the price rocketing. But if an ETF gets approved this week, that won't necessarily mean investors jump in on day one. "The fund flows are an important signal to the market," said Oppenheimer's Owen Lau. "If the initial flow is not as strong as expected, there could be downward pressure on the bitcoin price. But if the flow is better than expected, the upward momentum will likely continue and test new recent highs." It's also possible the appetite for a bitcoin ETF has been exaggerated. Some on Wall Street are concerned that flows of money into bitcoin ETFs will merely be capital exiting existing bitcoin products (such as bitcoin futures ETFs) and that an ETF approval alone may not make a difference to those investors who remain uninterested in crypto. Bitwise, one of the asset managers waiting for a decision on a bitcoin ETF application, released a survey this week showing just 39% of financial advisors expect to see an ETF come to market this year, although 88% see its potential approval as a key catalyst. Possible disappointment Acheson said the initial market reaction next week may prove disappointing. "[My] gut feeling is we're probably overestimating the day one impact [but] underestimating the medium- and longer-term impact [of the] educational value of the investment advisors, and the BlackRock, Invesco, Fidelity marketing teams, gearing up to educate the mainstream public about the advantages" of crypto, she said. Tyrone Ross, a financial advisor and CEO of Onramp Invest, goes further still, expecting the first reaction to be "a dud." But, like Acheson, he believes events may become more interesting "in the medium to long term" as financial advisors grow more educated in crypto as an asset class, and crypto regulation becomes clearer. Even so, investors may still benefit from an SEC approval, regardless of the immediate success of any particular ETFs. "The rally was initially driven by anticipation of the launch of cryptocurrency spot ETFs, and in particular Bitcoin Spot ETFs," Worthington at JPMorgansaid. "The persistence of elevated activity, volumes, and prices could further support the rally even if bitcoin ETFs fall short of expectations." CNBC's Michael Bloom contributed reporting.

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Investors await a landmark decision on a bitcoin ETF in the week ahead. Here's what to expect - CNBC

This week, the cryptocurrency universe encountered a whirlwind of breakthroughs as the top trending cryptos Bitcoin and Shiba Inu, among many others, orchestrated a sense of frenzy within markets. Besides, in the realm of AI, a prominent powerhouse forged ahead with securing a groundbreaking accord for governing the use of AI.

Heres a wrap-up of some of the top advancements this week that fueled speculations among crypto market enthusiasts;

The worlds first cryptocurrency appears to have marked a dynamic week as Luke Dashjr, a core developer, recently hinted toward protocol changes with the potential cessation of BRC-20 Ordinals. Simultaneously, Binance, a leading cryptocurrency exchange, announced a strategic airdropof BTC, ETH, and Shiba Inu coins to users. Airdropping the aforestated tokens to users comes forth as an effort to enrich Binances user engagement. However, it also sheds light on Bitcoins pivotal role in shaping the broader crypto market dynamics.

In addition, what comes as a surprise is the U.S. Space Forces governmental touch on Bitcoin. The US Space Force recently ushered in the promotion of Bitcoin adoption. This move was further advocated by the U.S. Department of Defense, investor Cathie Wood, and Deaton.

Furthermore, in a gust of developments, the financial giant JP Morgan appears to be setting its sights on the potential launch of a Bitcoin ETF. This marks a pivotal milestone within Bitcoins horizon as it also adds a layer of credibility to the token.

Lastly, the SEC forges ahead with discussions revolving around approving a Bitcoin Spot ETF. The advancements concerning the matter suggest a potential breakthrough in regulatory processes, aiding in Bitcoin Spot ETF approval.

Also read: Cardano (ADA) Price Hits 18-Month High, Potential Price Targets Ahead

Concerning the Shiba Inu ecosystem, recent advancements shed light on significant whale movements and investor activity.

Market data showcased the accumulation of a staggering 600 billion SHIB from Binance, triggering a significant 10% upswing in SHIB and BONE prices as reported. Furthermore, the Shiba Inu burn rate recorded a remarkable surge, coinciding with a peculiar phenomenon wherein the Shiba Inu price also ditched a zero. The aforestated anomaly, accompanied by the constant burning of SHIB amid an increase in whale activity, further augments SHIBs bullish momentum.

Moreover, in terms of market rankings, SHIB overtook LTC and DAI, marking a noteworthy milestone for the token. Last but not least, the SHIB token emerged among popular tokens, such as LINK and 1INCH, at the forefront of the smart money token inflow list. This chronicle showcases Shiba Inus potential revival within the broader crypto market.

In a tempest of strides, the European Union (EU) appears to be marking a significant milestone in casting comprehensive AI rules. With the recent crackdown on AI-related rules within Europe, the EU primarily aims to regulate platforms like ChatGPT.

Furthermore, as the EU advances further, its impact on AI systems like OpenAI, among others, appears to have stirred up quite the speculation within the AI realm.

The latest AI agreement underscores the EUs dedication to navigating discussions that balance promoting AI-related technologies. Besides, it also preserves privacy, reflecting global efforts for responsible and ethical artificial intelligenceuse.

Also read: Crypto Prices Today: BTC, Pepe Coin Plummet As FLR Notes Strong Gains

CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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Crypto Headlines of The Week: Bitcoin, Shiba Inu, & AI Fans Speculations - CoinGape

KEY TAKEAWAYS

Bitcoin's recent rally may have taken it past the $42,000 market and helped put the crypto winter of 2022 far in the distance. However, it was also a year the largest cryptocurrency by market capitalization started on shaky grounds at a mere $16,500 level.

Here's what you need to know with the crypto markets looking ahead to the next year, standing at the cusp of important events such as the fate of the approval of a spot Bitcoin exchange-traded fund (ETF), Bitcoin halving, and developments in crypto regulation.

Ever since Blackrock (BLK) originally filed its spot Bitcoin ETF application with the U.S. Securities and Exchange Commission (SEC) in June, the impending approval of such a financial product has been the key area of focus for the crypto market.

So far, retail investors can only gain cryptocurrency exposure through ETFs that trade in cryptocurrency futures. A spot Bitcoin ETF would allow investors, especially retail investors, to gain access to Bitcoin without needing to hold their investment in a Bitcoin wallet.

Analysts expect big money to flow into Bitcoin spot ETFs if the SEC gives its approval, and that optimism has helped boost the price of Bitcoin, with the spot Bitcoin ETF market anticipated to grow to $100 billion over time, according to a report by Bloomberg. A report from Galaxy estimates inflows in spot Bitcoin ETF products could rise from $14 billion in the first year to $39 billion within three years.

That said, there remains uncertainty around the SEC's decision. The SEC has reportedly held multiple rounds of talks with prospective ETF issuers, with issuers amending applications to meet regulators' expectations.

"I'm optimistic, but I think it's quite likely we have another round of rejections before we get the positive news," BitGo CEO Mike Belshe recently told Bloomberg.

Blackrock and others have also filed for spot ether ETFs. However, the likelihood of approval for those products based around the alternative crypto asset is similarly unclear.

Bitcoin halvingor an event that roughly cuts in half rewards to Bitcoin miners for successfully mining the cryptocurrencyis expected to take place in 2024.

Why is it important? At 21 million, the supply of Bitcoin is finite making it harder to mine as more Bitcoins come into circulation. Bitcoin miners are rewarded for successfully mining a block. And the reward gets diminished with a halving, indirectly also impacting the number of Bitcoins in circulation. And price is inversely proportionate to supply.

The crypto market's boom and bust cycles have generally revolved around the Bitcoin halving event, which happens roughly every four years and involves a halving of the amount of new Bitcoin that is issued to miners on the network around every ten minutes.

According to a report from crypto asset manager Grayscale, there is reason to believe this halving event (and any positive tailwinds from a spot Bitcoin ETF approval) could be more impactful than it was in the past. This is due to the current distribution of the Bitcoin supply, which is largely held by entities that tend to hold for long periods of time.

"If these trends continue, the Grayscale Research team anticipates that the dynamics of Bitcoins ownership could increasingly amplify the impact of macro events, like evolving global policies and regulation (e.g., approval of US spot Bitcoin ETF), as well as crypto market developments, like the 2024 Bitcoin halving," said Grayscale Analyst Will Ogden Moore in the report.

Despite the Bitcoin-denominated cut for miners related to the halving event, Sabre56 CEO Phil Harvey says the mining industry will be fine, even in a scenario where a spot Bitcoin ETF is not approved. "In the absence of an ETF launch, the mining sector is likely to maintain its current state of health," Harvey told Investopedia. "Present revenue metrics for miners with direct access to power and equipped with state-of-the-art power generation reveal a robust economic landscape. The current economics are expected to endure, ensuring sustained and healthy profit margins post-halving."

2023 has been a massive year for crypto enforcement actions, with many of the biggest names in the industry, from Binance to Coinbase, facing lawsuits from the SEC or even the Department of Justice. Former FTX CEO Sam Bankman-Fried was found guilty of fraud and former Binance CEO Changpeng Zhao is facing charges of violating the Bank Secrecy Act.

After these recent events, it's becoming clear that the Wild West years of the crypto industry may be coming to an end. U.S. Senator Cynthia Lummis (R-WY) recently shared her optimism that regulatory clarity may finally arrive in early 2024 due to the move of traditional financial titans into the crypto market.

Additionally, U.S. Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam has pointed to Congress's increased concerns regarding crypto's potential use in illicit finance as a reason behind the legislative body's renewed interest in the subject.

In terms of other areas of regulation and policy that could affect the crypto market in 2024, TradeStation Head of Brokerage Solutions Anthony Rousseau pointed to the Financial Account Standards Board's (FASB) rule change for valuing crypto assets and a potential end to the Federal Reserve and other central banks' policies of monetary tightening.

The FASB rule change "opens the door for corporates now to have a path to add Bitcoin to the balance sheet as a reserve asset, as MicroStrategy has adopted," Rousseau told Investopedia. "Its plausible to believe we have reached the heights of this [central bank] tightening cycle. For risk assets to get a sustained bid we will need to see a path forward with lower rates and an end to Quantitative Tightening."

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What To Expect From Bitcoin and Crypto Markets In 2024 - Investopedia

Developers working with the two largest cryptocurrencies capitalized on early bull market intrigue.

Recently, there has been a notable increase in funding interest towards bitcoin mining companies. However, this weeks most substantial investment influx was directed at projects developing practical applications for the cryptocurrency.

In a parallel trend, various projects focused on scaling Ethereum have also secured considerable support recently. This surge in investment comes as the network gears up for its anticipated Dencun upgrade, scheduled for next year.

Babylon raised $18 million in a Series A led by Polychain and Hack VC. The company focuses on a unique protocol that allows Bitcoin to be used for staking in proof-of-stake networks. It offers a secure way for bitcoin holders to earn yields without needing third-party trust or bridging to other chains.

Read more: Core devs rule out Dencun fork this year

Elsewhere, MAP Protocol, a layer-2 chain built on Bitcoin, announced a strategic investment from Waterdrip Capital. MAP is a Bitcoin layer-2 solution that seeks to enhance cross-chain interoperability. It enables seamless interaction between Bitcoin and other public blockchain networks, ensuring secure and efficient transactions across different platforms.

Bitcoin investment firm Swan Bitcoin said Thursday that it raised and spent $205 million in 2023 via its equity, credit and hedge funds. The company also said it plans to raise an additional $150 million as it builds out an institutional offering.

Read more: Institutional custody of bitcoin could kill it, cautions Hayes

On the Ethereum side, Paradigm led a $9 million seed round in on-chain data platform Shadow. The engineering company streamlines on-chain data access by enabling efficient retrieval from contracts and transactions, and optimizing indexing. Its approach of moving event logs to shadow forks reduces gas costs and contract sizes, offering a cost-effective solution for blockchain data management.

Ten announced a $7.5 million raise for its encryption-focused layer-2, while another startup named Versatus said it closed a $2.3 million seed round for its stateless Ethereum rollup.

Lending and borrowing app Curvance closed a $3.6 million seed round this week that was noticeably thin on venture capital investment. The protocol mostly raised funds from a group of DeFi and DAO actors, including Offchain Labs and Wormhole.

The platforms co-founder Chris Carapola said Curvance capped investment in the token sale at $250,000 per party and hopes to soon turn governance over to a DAO. By capping token sale investments, Carapola suggested Curvance was trying to prevent major voting inequality within the DAO.

Curvance drew interest from venture capital, Carapola said, but decided to primarily raise funds from actors in its ecosystem instead, taking over a year to do so.

I would say the consistent thing that we saw was, This sounds amazing. How much can we get, and can you increase the round, can we play with the [valuation], do you want to do a Series A, like the more conventional route. And as soon as that really became the topic, it was like, you know youre not aligned, right? Carapola said.

Curvance raised its seed round at a $56 million valuation and its private round at a $75 million valuation, Carapola said.

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Funding Wrap: Bitcoin, Ethereum-based projects see fresh capital - Blockworks