- Leading asset managers, including BlackRock and VanEck, have updated their filings for spot bitcoin ETFs with the SEC, indicating a potential regulatory approval soon.
- These updates could lead to the launch of the first spot bitcoin ETFs, transforming the landscape of cryptocurrency investment.
In a bold move underscoring the evolving landscape of digital assets, major asset management firms have revised their filings with the U.S. Securities and Exchange Commission (SEC) for the much-anticipated spot bitcoin exchange-traded funds (ETFs). This development signals a potential shift in the regulatory stance towards cryptocurrency investment products.
By the close of last week, prestigious firms such as BlackRock Asset Management, VanEck, and Valkyrie Investments, along with several others, had submitted detailed documents. These documents meticulously outline the arrangements each firm has made with marketmakers to ensure efficient and liquid trading—a crucial aspect for the stability and success of these ETFs.
🚀 BREAKING: The #SEC might give the go-ahead to #Bitcoin spot ETFs by next Tuesday or Wednesday, sources say familiar with the matter.📅📈
14 asset managers (#BlackRock, #Fidelity and others) are in the race for SEC approval. Get ready for a financial game-changer! 🚀💼… pic.twitter.com/r77gpQcWZT
— Collin Brown (@CollinBrownXRP) December 30, 2023
All 14 Pending Bitcoin ETFs Have a 90% Probability of Approval by January 10th
Industry insiders privy to the filing process suggest that issuers meeting the year-end revision deadlines could see their ETFs launched as early as January 10. This date is significant as it is the deadline for the SEC to make a decision on the Ark/21Shares ETF. The anticipation is palpable, with the possibility of the SEC greenlighting these ETFs as soon as next week.
It’s noteworthy that bitcoin’s price trajectory this year has been remarkable, nearly doubling to just under $42,000. This surge is partly attributed to the market’s expectation of the SEC’s approval of a spot bitcoin ETF.
From a cost perspective, the landscape is diverse. Valkyrie has proposed a management fee of 0.80% for its ETF, aligning with the fee structure of Ark and 21Shares. In contrast, the Fidelity Wise Origin Bitcoin Fund is set to offer a more economical option with fees of only 0.39%. Meanwhile, Invesco plans a 0.59% fee but with a six-month waiver for the first $5 billion in assets.
The significance of this moment cannot be overstated. Over the past decade, the SEC has been cautious, repeatedly rejecting attempts to launch spot bitcoin ETFs due to concerns over market manipulation and investor protection. The only cryptocurrency ETFs previously approved were tied to futures contracts on bitcoin and ethereum.
As the industry awaits the SEC’s response, the potential approval of these spot bitcoin ETFs represents more than just a new financial product. It symbolizes a maturing of the cryptocurrency market and a shift in regulatory perspectives, opening a new chapter in digital asset investment. MicroStrategy CEO Michael Saylor even calls it the “biggest event for Wall Street in the last 30 years.”
