SEC to Notify Applicants of Bitcoin ETF Decision
The US Securities and Exchange Commission (SEC) is expected to notify asset managers who have applied for a spot Bitcoin ETF about the approval of their applications by next week, according to a recent report from Reuters. This announcement would come ahead of the January 10 deadline for the SEC to make a decision on the ETF application by Ark Invest and 21Shares.
Asset Managers May Launch by January 10
Reuters states that asset managers who met their filing revision deadlines at the end of the year may be able to launch their Bitcoin ETFs by January 10, 2024. Notable firms that have recently updated their filings include Black Rock, Van Eck, Bitwise, WisdomTree, Invesco, Valkyrie, and Fidelity.
Fidelity Offers Lowest Sponsor Fee
Fidelity Investments has revealed more details about its potential ETF product, proposing the lowest sponsor fee at 0.39%. Invesco announced a 0.59% rate with a fee waiver on the first $5 billion in assets within the first six months after launch. BlackRock has named Jane Street Capital and JP Morgan Securities as its authorized participants in its updated application.
Possibility of Multiple Approvals by January 10
The SEC’s move to notify applicants about their Bitcoin ETF approvals next week suggests that the agency is aiming to conclude the process early in the new year. The report from Reuters adds optimism to the possibility of multiple ETF applications receiving approval by January 10.
Potential Impact on Bitcoin Price
Greeks.live, an options platform, has analyzed the potential impact of a Bitcoin ETF approval on the cryptocurrency’s value. They suggest that the market has already priced in the approval, indicating that any positive development may not lead to significant price movement. Options implied volatility (IV) data also suggests that there may not be a substantial impact on the Bitcoin price, even with significant news on the horizon.
Bitcoin Price Update
As of now, Bitcoin is valued at $42,154, showing a slight 0.4% increase in the past day. The anticipation of a Bitcoin spot ETF has contributed to the cryptocurrency’s 150% price increase this year.
Hot Take: SEC’s Decision Looms for Bitcoin ETF Applicants
The US Securities and Exchange Commission (SEC) is expected to notify asset managers who have applied for a spot Bitcoin ETF about their application approvals by next week. This development brings hope for multiple ETF applications receiving approval by January 10, potentially impacting the price of Bitcoin. However, options data suggests that the market has already priced in this information, indicating limited potential for significant price movement. As anticipation builds and the new year begins, all eyes are on the SEC’s decision and its potential implications for the cryptocurrency market.
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