Notable Developments in the US Spot Bitcoin ETF Saga
There have been recent developments in the spot Bitcoin ETF saga in the US, with asset managers revising their applications after discussions with the SEC. On December 29, Fidelity Investments and six other asset managers, including VanEck, Bitwise, WisdomTree, Invesco, BlackRock, and Valkyrie, updated their ETF applications with the SEC. This suggests that they are preparing for approval from the securities regulator.
Fidelity Offers Lowest Sponsor Fee to Attract Investors
Fidelity Investments revealed more information about its proposed spot Bitcoin ETF in its S-1 form update. It announced Jane Street Capital as an authorized participant (AP), which plays a crucial role in the creation and redemption process of an ETF. Fidelity is also trying to attract investors by offering the lowest sponsor fee of 0.39%. This move has been commended by Bloomberg senior ETF analyst Eric Balchunas.
Asset Managers Join Incentive Game
Invesco has waived its 0.59% sponsor fee on the first $5 billion of Trust assets for the initial six months after launching its proposed Bitcoin ETF. BlackRock also updated its form and announced Jane Street Capital and JP Morgan Securities as authorized participants. In total, 13 out of the 14 asset managers seeking approval for a spot Bitcoin ETF amended their applications on December 29.
Possible Conclusion to the Bitcoin ETF Saga
The spot Bitcoin ETF saga may be approaching a definite conclusion following the multiple amendments by asset managers. The SEC’s decision window is between January 8 and January 10, and analysts are optimistic about several approval orders. However, there are differing opinions on the potential effects of a spot ETF on the price of Bitcoin. Some analysts predict a drop in price due to a “sell the news” event, while others forecast increased demand and a surge in market price.
Hot Take: Uncertainty Surrounds Potential Bitcoin ETF Approval
The approval of a spot Bitcoin ETF by the SEC remains uncertain, with analysts divided on its impact. While some predict a decline in Bitcoin’s price, others anticipate increased demand and a rise in market price. The decision window for the SEC is eagerly awaited, and it could mark a significant milestone for the crypto industry. Whether the approval leads to short-term volatility or long-term growth remains to be seen. All eyes are on the regulatory body as it weighs the potential benefits and risks of allowing a spot Bitcoin ETF in the US market.
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