Several asset management firms are racing to secure regulatory approval for exchange-traded funds (ETFs) linked to Bitcoin's spot price. Recently, they updated their filings with the Securities and Exchange Commission (SEC), hinting at a potential imminent decision.
By the end of Friday, a lineup of big names such as BlackRock Asset Management, VanEck, Valkyrie Investments, Bitwise Investment Advisers, Invesco Ltd., Fidelity, WisdomTree Investments, and a partnership between Ark Investments and 21Shares had all submitted revised documents. These filings detailed the arrangements made with marketmakers to ensure smooth and liquid trading.
Insiders familiar with the filing process hinted that those meeting the year-end revision deadlines might get the green light to launch by January 10, a key date when the SEC is due to decide on the Ark/21Shares ETF.
Sources suggest the SEC might notify issuers as early as Tuesday or Wednesday following potential clearance to launch the ETFs the subsequent week. The anticipation stems from Bitcoin’s significant price surge this year, nearly doubling and hovering close to $42,000, largely fueled by expectations of an SEC approval for a spot Bitcoin ETF.
Should the regulators give the go-ahead, Valkyrie, for instance, outlined plans for an ETF management fee of 0.80%, while Ark/21Shares and Fidelity proposed a similar fee structure. Interestingly, Fidelity’s Wise Origin Bitcoin Fund plans to charge a notably lower fee at 0.39%.
Invesco, on the other hand, announced a 0.59% fee but indicated a waiver for the first six months on the initial $5 billion in assets attracted to the new fund.
This race for approval involves a total of 14 asset managers striving for the green light. Over the last decade, the SEC has repeatedly turned down similar ETF launches due to concerns about market manipulation and investor protection. So far, only cryptocurrency ETFs tied to Bitcoin and Ethereum futures contracts on the Chicago Mercantile Exchange have received approval.
Additionally, Grayscale Investments and Hashdex are seeking to convert existing products into spot Bitcoin ETFs and submitted their own updates earlier this month.
