Asset Management Firms Prepare for Bitcoin ETF Approval
Asset management firms are making final preparations for the potential approval of exchange-traded funds (ETFs) tied to the spot price of bitcoin. Companies such as BlackRock Asset Management, VanEck, Valkyrie Investments, Bitwise Investment Advisers, Invesco Ltd., Fidelity, WisdomTree Investments, and a joint venture between Ark Investments and 21Shares have updated their filings with regulators.
The firms have detailed the arrangements they have made with their market makers to ensure efficient and liquid trading. If issuers meet the end-of-year filing revision deadlines, they may be able to launch ETFs by January 10. Sources suggest that the Securities and Exchange Commission (SEC) could notify issuers as early as next week regarding approval.
Bitcoin’s Price Surge and ETF Approval Expectations
Bitcoin’s price has more than doubled this year, reaching nearly $42,000. The anticipation of SEC approval for spot bitcoin ETFs has contributed to this surge. Regulators could inform issuers of their decision as early as next week.
Fees and Potential Launches
Valkyrie, Ark/21Shares, Fidelity, and Invesco have disclosed the management fees for their proposed ETFs. Valkyrie plans to charge a fee of 0.80%, while Ark/21Shares and Fidelity propose the same fee. Invesco initially announced a 0.59% fee but intends to waive it for six months on the first $5 billion in assets attracted by the new fund.
Currently, there are 14 asset managers seeking SEC approval for spot bitcoin ETFs. Over the past decade, the regulator has rejected numerous attempts due to concerns about market manipulation and investor protection. Only ETFs tied to futures contracts on bitcoin and ethereum have been approved.
Grayscale Investments and Hashdex Updates
Grayscale Investments and Hashdex, which aim to convert existing products into spot bitcoin ETFs, submitted their own updates earlier this month. The SEC has not yet responded to requests for comment.
Hot Take: Impending SEC Approval Could Boost Bitcoin’s Price Further
The potential approval of spot bitcoin ETFs by the SEC is generating excitement in the crypto market. If issuers receive the green light next week, it could lead to a significant increase in bitcoin’s price. Investors are eagerly awaiting the decision, which could open up new investment opportunities and drive further growth in the cryptocurrency industry.
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