VanEck Allocates $72.5 Million for Bitcoin ETF, BlackRock Commits $10 Million

Prospective issuers of spot Bitcoin ETFs in the United States have disclosed the initial funding amounts for their products in updated S-1 filings with the SEC.

Investment firm VanEck announced its intention to allocate $72.5 million for the structure.

BlackRock will commit $10 million to the launch of its Bitcoin ETF.

Bitwise Asset Management has planned an initial investment of $500,000. Meanwhile, Pantera Capital expressed interest in investing $200 million in a Bitcoin fund. According to the filing, this intention is not a legally binding obligation for the firm.

The Valkyrie fund will receive $525,000 from its parent company through share purchases. The initial funding for the Bitcoin ETF from ARK Invest and 21Shares will amount to $437,000.

In late December, WisdomTree allocated $2.5 million to a subsidiary designated as the sponsor of the future fund. Around the same time, Invesco and Galaxy took a similar approach, with their joint product investment reaching $5.1 million.

Issuers also provided final details on the fee structures for crypto ETFs. Bitwise announced the lowest fixed fee rate at 0.24%. VanEck follows with 0.25%, but the firm also plans a zero fee for the first 3-6 months. BlackRock will start with a 0.2% fee, which will later increase to 0.3%.

Amidst these developments, Grayscale Investments reduced its fee from 2% to 1.5% as part of the proposed conversion of its Bitcoin Trust into a spot ETF. At the time of writing, the assets of the Grayscale Bitcoin Trust amount to nearly $29 billion. The trust holds over 622,600 BTC, or about 3% of the total issuance of the first cryptocurrency.

Earlier, two days before the SEC’s decision on spot Bitcoin ETFs, the agency’s head, Gary Gensler, warned of the volatile nature of crypto assets and the associated risks.

According to Matrixport analyst Markus Thielen, the regulator is expected to reject all product applications in January, contrary to the expectations of some experts.