The cryptocurrency market is about to change forever, with the upcoming approval of exchange-traded funds (ETFs) tied to the spot price of bitcoin by the U.S. Securities and Exchange Commission (SEC).
Major asset managers such as BlackRock, VanEck, Valkyrie Investments, Bitwise, Invesco, Fidelity, WisdomTree, Ark Investments and 21Shares have stepped up their preparations to launch these ETFs and updated their filings with the SEC this week.
The updates, which took place on Friday (29), indicate that issuers are adhering to regulatory requirements and SEC guidelines. Experts believe the first spot bitcoin ETFs could launch as early as January, with the SEC having until the 10th to approve or reject the Ark and 21Shares ETFs.
The possibility of approval raised great expectations in the market and contributed to the valuation of Bitcoin, which doubled its value this year and approached $44,000. The approval of these ETFs would mark a significant step in legitimizing bitcoin as a traditional asset class, offering investors a new form of exposure to the cryptocurrency.
In addition to the race for approval, companies also announced their compensation strategies. Valkyrie has suggested a management fee of 0.80%, while the Fidelity Wise Origin Bitcoin Fund promises to be the most affordable, with fees as low as 0.39%.
Invesco plans a 0.59% fee, with the option to waive that fee for the first $5 billion in assets in the first six months.
The SEC, which has rejected several attempts to launch spot bitcoin ETFs in the past over concerns about market manipulation and investor protection, has not yet officially responded to the updates.
Expectations now revolve around the SEC’s decision, which could significantly change the landscape of the cryptocurrency market, introduce a new level of accessibility and legitimacy to bitcoin, and potentially influence its price trajectory in the near future.
Bitcoin ETF Wars
Bitwise, one of the global leaders in cryptocurrency fund management, has announced $200 million in seed funding for its Bitcoin Spot ETF. The revelation comes at a time of intense competition among major securities issuers including BlackRock, Fidelity and Hashdex, all trying to gain a dominant position in the growing Bitcoin ETF market.
Bloomberg senior ETF analyst Eric Balchunas highlighted in a recent tweet that Bitwise’s initial investment is significantly larger than BlackRock’s $10 million, a factor that could be decisive in the early stages of the ETF market race.
Although Bitwise has not yet named an Authorized Participant (AP), Bitwise is expected to release this information soon.
As the deadline for approval of Bitcoin Spot ETFs by the US SEC approaches, expectations are growing that this decision will significantly impact the prices of Bitcoin and cryptocurrencies in 2024.
This period is particularly important given Bitcoin’s upcoming halving, scheduled for April 2024, which has historically affected cryptocurrency prices.
Bitwise’s move and the race among major ETF issuers demonstrate robust growth and growing interest in the cryptocurrency sector, signaling a potential shift in the perception and acceptance of cryptocurrencies as a viable and legitimate asset class on the global financial stage .
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
