The crypto market is eagerly awaiting exchange-traded funds (ETFs) tied to Bitcoin’s spot price. Asset management companies are trying to be among the first to win regulatory approval to launch a spot Bitcoin ETF. Market experts predict a decision from the regulator is imminent. Amid these developments, companies that applied to the SEC updated their applications on Thursday and Friday. In a recent development, Reuters reports based on its sources that the companies are preparing for the launch before the decision date of January 10.
SEC may announce spot Bitcoin ETF decision next week
cryptokoin.comAs you follow from , BlackRock Asset Management (BLK.N), VanEck, Valkyrie Investments, Bitwise Investment Advisers, Invesco Ltd. were traded until late Friday afternoon. (IVZ.N), Fidelity, WisdomTree Investments (WT.N) and the joint venture between Ark Investments and 21Shares have filed new documents with regulators detailing the arrangements each has with market makers to ensure trading is liquid and efficient.
People familiar with the filing process say issuers that meet year-end filing revision deadlines can hit the market by Jan. 10, the date by which the SEC must approve or reject the Ark/21Shares ETF. Due to the confidentiality of the conversations, sources prefer to speak in the background. The SEC will notify issuers of its decision on Tuesday or Wednesday next week, according to Reuters’ sources. In his decision, he will state that he allows them to launch it the following week.
Companies applying for spot BTC ETFs are ready
Bitcoin’s price has more than doubled this year to just over $42,000. This has been fueled in part by expectations that the SEC will soon approve a spot Bitcoin ETF product. If regulators choose to approve spot Bitcoin ETFs, they could notify issuers as early as next week.
Valkyrie also announced that it will receive a 0.80% management fee from the ETF if the SEC approves the products early in the new year. Ark and 21Shares previously announced that they were proposing to charge the same fee for their ETFs. Fidelity Wise Origin Bitcoin Fund is set to be the cheapest fund with a fee of only 0.39%. Invesco announced plans for a 0.59% fee. However, in its application, it made an exception for the first $5 billion in assets attracted by the new fund. In this context, he stated that he would waive this fee for six months.
There are currently a total of 14 asset managers awaiting approval from the SEC for their spot Bitcoin ETF products. Over the past decade, the U.S. securities regulator has rejected many attempts to bring these products to market, citing fears of market manipulation and issuers’ inability to protect investors. The only cryptocurrency ETFs approved to date are futures ETFs. These are tied to Bitcoin and Ethereum futures contracts traded on the Chicago Mercantile Exchange. Both are owned by Grayscale Investments and Hashdex. These two asset management companies are trying to convert existing products into a spot Bitcoin ETF product.
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