Leading asset management firms, including BlackRock Asset Management, VanEck, and Fidelity, are preparing to obtain regulatory approval to launch exchange-traded funds (ETFs) tied to Bitcoin‘s spot price. The recent filings with the Securities and Exchange Commission (SEC) signal a collective effort to secure a coveted spot in the burgeoning crypto ETF market. Market participants anticipate an imminent decision from the SEC, while the filings detail each firm’s arrangements with market makers to ensure efficient and liquid trading.
Key players like Valkyrie Investments, Bitwise Investment Advisers, Invesco Ltd., WisdomTree Investments, Ark Investments, and their joint venture with 21Shares submitted revised documents highlighting intricate plans with market makers. These strategic moves position these asset management companies at the forefront of potential approval, with insiders suggesting a decision could be announced as early as the following week.
Individuals familiar with the filing process suggest that firms meeting the year-end filing revision dates could launch their products by January 10, aligning with the SEC’s authority to approve or reject the Ark/21Shares ETF.
Speculation abounds that the SEC may communicate its approvals to issuers on a Tuesday or Wednesday, potentially setting a precedent. Bitcoin’s price doubling this year to approximately $42,000 has fueled expectations that the SEC may soon approve a spot Bitcoin ETF, with the market eagerly awaiting regulatory decisions that could unveil new investment avenues and contribute to the mainstream acceptance of cryptocurrencies.
Valkyrie’s application disclosed a proposed management fee of 0.80% for the ETF, pending SEC approval early in the new year, while Ark Investments and 21Shares had previously reported a similar fee structure. Fidelity’s Wise Origin Bitcoin Fund aims to be the most cost-effective with fees set at only 0.39%, while Invesco, planning a 0.59% fee, indicated it would waive fees for the first $5 billion in assets for the first six months.
The current race for SEC approval includes a total of 14 asset managers seeking the green light for spot Bitcoin ETFs. Over the past decade, the SEC has rejected numerous attempts to launch such products, citing concerns over market manipulation and investor protection. To date, approved crypto ETFs have been linked to Bitcoin and Ethereum futures contracts traded on the Chicago Mercantile Exchange.
Notable contenders aiming to convert their existing products into spot Bitcoin ETFs, Grayscale Investments, and Hashdex, submitted their updates earlier this month. The evolving landscape points to a maturing crypto market, and the SEC’s response to these applications will undoubtedly impact the trajectory of crypto investments. As asset management giants position themselves for a potential breakthrough in Bitcoin ETF approvals, the crypto market stands at a critical juncture. Investors and market analysts await the SEC’s decision with anticipation, aware of the transformative effect it could have on the accessibility and acceptance of crypto assets. The coming weeks could open a new chapter in the narrative of cryptocurrency.
