Jay Clayton: SEC’s Approval of Bitcoin ETF is Inevitable
Jay Clayton, the former chairman of the United States Securities and Exchange Commission (SEC), believes that the approval of a spot Bitcoin exchange-traded fund (ETF) by the agency is inevitable. In an interview with CNBC, Clayton stated that there is nothing left for the SEC to decide as they are comfortable with the disclosures provided by ETF applicants.
“I think approval is inevitable. There’s nothing left to decide… Yeah, I do [believe that Bitcoin ETF approval is imminent]. I could be wrong, but that’s what I think,” Clayton said.
The Improvements in the Bitcoin Trading Market
Clayton explained that the Bitcoin trading market has significantly improved compared to five years ago. He mentioned that participants were previously involved in activities such as wash sales and laddering, which posed risks and were not accessible to the general public. However, applicants’ disclosures now provide investors with essential information about the underlying Bitcoin market, technology, custody, creation, and redemption of the new product.
Clayton commended the SEC for reaching this stage and emphasized that the approval of a Bitcoin ETF would be a significant development for both Bitcoin and the finance industry as a whole.
“This is a big step, not just for Bitcoin but for finance generally. If you can digitize, tokenize underlying assets and trade that way, that’s a potential significant change across finance, not just in the crypto space,” Clayton added.
Competition Among Applicants
Various spot Bitcoin ETF applicants have filed finalized updates for their S-1 forms with the SEC. These include Valkyrie, WisdomTree, BlackRock, VanEck, Invesco/Galaxy, Grayscale, and ARK Invest/21Shares. The filings reveal the fees offered by each potential ETF issuer, as they compete for approval. Bitwise offers the lowest fee of 0.24% after the initial six months and the first $1 billion in assets. ARK Invest/21Shares follows closely with a fee of 0.25% under the same conditions.
BlackRock, the world’s largest asset manager, offers a fee of 0.20% for the first 12 months or until the first $5 billion in assets, which then increases to 0.30% as the ongoing fee. Franklin Templeton offers a fee of 0.29%, Fidelity’s fee is at 0.39%, and VanEck lists a fee of 0.25%.
The crypto community eagerly awaits the SEC’s announcement as the agency’s decision deadline is January 10.
Hot Take: The Future of Bitcoin ETFs
Jay Clayton’s belief that the SEC’s approval of a Bitcoin ETF is inevitable aligns with growing optimism within the crypto community. The improved disclosures from applicants have addressed previous concerns about market risks and transparency. If approved, a Bitcoin ETF would not only benefit Bitcoin but also revolutionize finance by digitizing and tokenizing underlying assets. The competition among various applicants highlights the demand for such investment products.
As we await the SEC’s decision on January 10, many are hopeful that this significant development will pave the way for increased institutional participation in the cryptocurrency market.
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