Bitwise Attracts $200 Million Seed Fund for Bitcoin ETF
Bitwise, the Illinois-based company, has received interest from an investor willing to seed its Bitcoin ETF with a significant $200 million upon launch. This amount surpasses BlackRock’s initial seed fund of $10 million. The large seed fund could provide Bitwise with an advantage in the early stages of the race for approval of Spot Bitcoin ETFs. Other issuers, such as BlackRock and Invesco Galaxy, have already named their authorized participants (APs) in their filings with the SEC. However, Bitwise has not yet named its AP.
Bitwise Predicts Bitcoin Price to Reach $80k
Bitwise has updated its application for a spot Bitcoin ETF listing after it appeared on the Depository Trust & Clearing Corporation (DTCC), indicating that the product is coming to the market. The company is optimistic about Bitcoin’s future, predicting that it will reach new all-time highs of up to $80,000 by 2024. This sentiment is shared by Bitwise’s Chief Investment Officer, Matt Hougan, who believes that the crypto bear market is over and expects mainstream institutional adoption of crypto assets.
Intense Competition in the Spot ETF Race
Seven out of thirteen applicants have submitted revised S-1 forms to the SEC for a spot Bitcoin ETF by the deadline. Competitors include BlackRock, Van Eck, Grayscale, WisdomTree, Invesco Galaxy, ARK Invest, Valkyrie, and Franklin. As the Jan. 10 SEC approval approaches, a price war has emerged among these companies. Invesco Galaxy has waived its fees for the first six months and the first $5 billion in assets to attract early investors. Fidelity has adopted a fee structure of 0.39%. BlackRock has disclosed JPMorgan Securities and Jane Street as intended participants for its Bitcoin ETF.
SEC Expected to Approve Cash-Only Creations and Redemptions
The SEC is likely to approve spot Bitcoin ETF proposals that commit to cash-only creations and redemptions, provided they have agreements with authorized participants. The approval likelihood stands at 90%, and some firms are expected to launch a spot Bitcoin ETF in early January.
Hot Take: The Race for Spot Bitcoin ETF Approval Heats Up
The competition for the approval of Spot Bitcoin ETFs is intensifying as Bitwise attracts a $200 million seed fund, surpassing BlackRock’s initial investment. With the deadline approaching, seven out of thirteen applicants have submitted revised S-1 forms to the SEC. A price war has emerged among the contenders, with some companies waiving fees or adopting competitive fee structures. The SEC is expected to approve proposals that commit to cash-only creations and redemptions, paving the way for the launch of spot Bitcoin ETFs in early January. The future of cryptocurrency and institutional adoption is looking promising as Bitwise predicts Bitcoin’s price to reach new all-time highs.
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