As the January 10 deadline approaches for the United States Securities and Exchange Commission (SEC) to make a crucial decision on the approval of Spot Bitcoin Exchange-Traded Funds (ETFs), a recent report from Reuters has heightened anticipation. It suggests that the Bitcoin ETF approval date might be very close, and asset managers may receive notifications as early as Tuesday or Wednesday regarding the fate of their applications.
The report explores the dynamics surrounding this potential approval, delving into the details of submissions from major players as the Bitcoin community eagerly awaits the groundbreaking decision.
Bitcoin ETF Approval Date: Asset Managers Racing Against the Clock
According to Reuters, sources close to the matter indicate that the SEC is poised to inform asset managers of the approval status of their Spot Bitcoin ETF applications by the middle of the week. This timing is crucial, allowing the applicants some time to prepare, aligning with the impending deadline for the SEC’s decision on the ETF proposed by Ark Investments and 21Shares on January 10. The report stated:
“The SEC may notify issuers as soon as Tuesday or Wednesday that they have been cleared to launch the following week, said those sources, who spoke on background given the confidential nature of the discussions.”
Noteworthy contenders in this race for approval include Valkyrie, Bitwise, WisdomTree, Franklin Templeton, BlackRock, VanEck, Invesco, and Fidelity. The possibility of receiving the green light before the deadline, presents these asset managers with the opportunity to launch their ETFs promptly upon official approval.
Friday Filing Frenzy
On the last business day before the weekend, major asset managers engaged in a flurry of activity to meet regulatory requirements. BlackRock, VanEck, Bitwise, Fidelity, and Ark Invest all submitted revised documents outlining the specifics of their arrangements with market makers. These submissions are crucial for ensuring the liquidity and efficiency of trading, once the ETFs are in play.
Competition Among Asset Managers
Among the key details disclosed in these filings are the fee structures proposed by the asset managers. Valkyrie has announced a 0.80% management fee, aligning with Ark/21Shares’ proposed rate.
In a bid to stand out, Fidelity has proposed an impressively low 0.39% fee for its Wise Origin Bitcoin Fund. Invesco, on the other hand, offers a 0.59% fee with a six-month waiver for the first $5 billion in assets. The competitive landscape for fee structures is shaping up, reflecting the strategic positioning of each applicant.
In its Friday filing, Bitwise outlined its intention to seed its Spot Bitcoin ETF with $200 million, while BlackRock disclosed a plan to seed its ETF with $10 million.
Notably, the joint approval of all ETF applications is poised to intensify competition, triggering an anticipated fierce battle among major players vying for market share.
Related reading: Bitcoin ETF Ad Battles: Hashdex Starts Its Ad Campaign
The Pivotal Moment Draws Near
If approval notifications are indeed issued by Tuesday or Wednesday, the digital asset landscape could witness a transformative shift, with Bitcoin Spot ETFs becoming a reality. The event could mark a pivotal moment in the broader acceptance of Bitcoin within traditional financial markets, potentially opening the floodgates for substantial capital flow.
