The SEC Approves Spot Bitcoin ETF Proposals
The Securities and Exchange Commission (SEC) has given its approval for spot bitcoin exchange-traded funds (ETFs) on an accelerated basis. However, the document containing the approval has been removed from the SEC website. Bloomberg ETF analyst James Seyffart confirmed the accuracy of the document before it was taken down.
Grayscale’s GBTC Approved for NYSE Arca Listing
Grayscale, the company behind the popular Grayscale Bitcoin Trust (GBTC), has received regulatory approval to list GBTC on NYSE Arca. The team will be sharing a press release with more details soon.
Cboe BZX Sends Letters to SEC Requesting Acceleration
The Cboe BZX exchange sent letters to the SEC requesting accelerated registration for proposed spot bitcoin ETFs. Later, it issued listing notifications for six prospective ETFs, announcing that trading would begin soon. These actions were taken before receiving official approvals from the SEC.
Potential Inflows Expected for Spot Bitcoin ETFs
Once trading begins, spot bitcoin ETFs could see significant inflows. Valkyrie Investments co-founder Steven McClurg predicts $200 million to $400 million coming into Valkyrie’s ETF, with overall inflows potentially reaching $4 to $5 billion in the first few weeks. Other estimates include $1 billion in the first few days and $2.4 billion within a quarter.
Preparing for Spot Bitcoin ETFs
The issuers of spot bitcoin ETFs have secured seed funding for their products. VanEck has invested $72.5 million, Bitwise has seeded its proposed ETF with $500,000, Pantera Capital is interested in investing $200 million if approved, and BlackRock has seeded its potential ETF with $10 million.
Competition for Lowest Fees
Before approval, ETF applicants competed to offer the lowest fees. Bitwise offered zero fees for the first six months or until $1 billion of assets, and 0.2% afterward. BlackRock maintained a discounted 0.2% for the first 12 months or until $5 billion in assets, and 0.3% thereafter. Other fees ranged up to 1.5%.
Hot Take: Spot Bitcoin ETFs Gain Regulatory Approval
The SEC’s approval of spot bitcoin ETF proposals is a significant development for the cryptocurrency industry. It opens up new investment opportunities and could attract billions of dollars in funds. The competition among issuers to offer low fees reflects the growing demand for these products. As trading begins, it will be interesting to see the impact on the market and whether the predicted inflows materialize. Overall, this approval marks a positive step forward for the adoption and acceptance of bitcoin within traditional financial systems.
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