Asset management giants like BlackRock and VanEck are pushing forward in the race to secure regulatory approval for exchange-traded funds (ETFs) linked to the actual price of bitcoin. Recent filings with the Securities and Exchange Commission (SEC) reveal their renewed efforts, signaling an anticipation of an imminent decision by the regulatory body.
By the end of the week, several prominent firms, including BlackRock Asset Management, VanEck, Valkyrie Investments, Bitwise Investment Advisers, Invesco Ltd., Fidelity, WisdomTree Investments, and a collaborative effort between Ark Investments and 21Shares, updated their filings. These documents detail the arrangements with market makers to ensure robust liquidity and efficiency in trading.
Insiders familiar with the filing procedures suggest that those meeting the year-end deadline for filing revisions might be poised for a potential launch by January 10. This date is crucial as it marks the SEC’s mandate to either approve or reject the Ark/21Shares ETF proposal.
Sources privy to confidential discussions indicate that the SEC might communicate clearance for launch as early as the following week, possibly by Tuesday or Wednesday.
The surge in bitcoin’s value, nearly doubling this year and nearing $42,000, is partially fueled by expectations surrounding the imminent approval of a spot bitcoin ETF by the SEC.
Should the regulatory body greenlight spot bitcoin ETFs, they could potentially announce the decision to issuers as soon as next week.
Disclosures within the filings revealed Valkyrie’s intention to impose a management fee of 0.80% on its ETF if approved in the new year. Similarly, Ark and 21Shares had previously announced the same fee structure for their proposed ETF. Conversely, the Fidelity Wise Origin Bitcoin Fund aims to offer the least expensive option, with fees set at only 0.39%.
Invesco, outlining plans for a 0.59% fee, also included a waiver for the first six months on the initial $5 billion in assets the fund attracts.
Notably, 14 asset managers are currently vying for SEC approval for spot bitcoin ETFs. The regulator, over the past decade, has rejected multiple attempts citing concerns about market manipulation and investor protection. To date, approved cryptocurrency ETFs have been linked to futures contracts on bitcoin and ethereum, traded on the Chicago Mercantile Exchange.
Earlier this month, Grayscale Investments and Hashdex, eyeing the conversion of existing products into spot bitcoin ETFs, submitted their own updates in pursuit of approval.
