The U.S. Securities and Exchange Commission (SEC) is anticipated to make a decision regarding the approval of the first-ever U.S. spot bitcoin exchange-traded funds (ETFs) by Tuesday or Wednesday. Several prominent asset management firms, including BlackRock, VanEck, Valkyrie, Bitwise, Invesco, Fidelity, WisdomTree, and the Ark Invest/21shares joint venture, have submitted revised filings with the SEC, intensifying expectations for the approval of multiple spot bitcoin ETFs.
Key Points:
Anticipation for Approval: Market participants are eagerly awaiting a decision from the SEC regarding the approval of spot bitcoin ETFs in the U.S. The deadline for the proposed spot bitcoin ETF by Ark Invest/21shares is Jan. 10, and there is widespread speculation that the SEC may provide clearance for multiple ETFs by that date.
Revised Filings: Major asset management firms, including BlackRock, Vaneck, Valkyrie, Bitwise, Invesco, Fidelity, Wisdomtree, and the Ark Invest/21shares joint venture, submitted revised filings with the SEC on Friday. These filings are part of the ongoing efforts to secure regulatory approval for spot bitcoin ETFs.
Potential Notification: Citing sources familiar with the filing process, Reuters reported that the SEC may notify issuers as soon as Tuesday or Wednesday about the clearance to launch spot bitcoin ETFs the following week. This development has heightened expectations in the market.
Fee Structures: Asset management firms are finalizing fee structures for their spot bitcoin ETFs. Valkyrie announced a 0.80% management fee, similar to Ark/21Shares' proposed rate. Fidelity aims to offer a lower fee of 0.39% for its Wise Origin Bitcoin Fund, while Invesco proposes a 0.59% fee with a six-month waiver for the first $5 billion in assets.
Seeding Plans: Bitwise plans to seed its spot bitcoin ETF with $200 million, and BlackRock revealed a seeding plan with $10 million on Jan. 3. Despite JPMorgan CEO Jamie Dimon's historical negative stance on cryptocurrencies, BlackRock named JPMorgan as a lead authorized participant.
Outlook: The imminent decision by the SEC on the approval of spot bitcoin ETFs has generated significant excitement in the market. If approved, these ETFs would mark a milestone for the crypto industry, providing investors with a regulated and accessible way to gain exposure to bitcoin's spot market.
Conclusion: As asset management firms await the SEC's decision, the potential approval of spot bitcoin ETFs in the U.S. is viewed as a significant development that could have far-reaching implications for the broader cryptocurrency market. Investors and industry participants are closely monitoring the regulatory landscape for further clarity on the future of these financial products.
(Kevin Helms, BITCOIN NEWS, 2023)