🚨Custodia Bank CEO Caitlin Long warns of "potential risks" associated with several Bitcoin ETFs preparing to launch in the United States, after BlackRock updated its S-1 file.

🔍According to the founder, sponsors may try to generate more returns from their funds by using securities lending, which "can pose many potential risks to investors ."

📉Long's concerns increased as the management fees of Bitcoin ETF applications dropped to their lowest levels, they theoretically take an annual percentage of investors' BTC.

📊On Monday, BlackRock's amended prospectus revealed that its management fee will be 0.3%. Simultaneous updates from competitors like VanEck and Bitwise announced lower fees of 0.25% and 0.24% - numbers that surprised even analysts.

💡According to Long, securities lending has become popular in the fund management industry over the past 15 years as a way to generate profits in addition to fees. In the context of an ETF, this would not include lending the fund's underlying Bitcoin, which would be illegal for any enabler.

🔮Many analysts expect the SEC to approve the candidates' 19b-4 applications on January 10, which is the deadline for Ark Invest/21Shares ETF approval.