The Rivalry among Bitcoin ETF Applicants for Approval
As the deadline for the SEC’s decision on approving or denying the Bitcoin exchange-traded fund (ETF) approaches, there is growing competition among the 14 asset managers vying for approval. Recent reports suggest that asset managers like Fidelity are intentionally pricing their funds at lower rates compared to their competitors. For example, Fidelity’s Wise Origin Bitcoin Fund will impose a fee of 0.39 percent, while other registrants like Ark, 21Shares, and Valkyrie propose a fee of 0.8 percent. By offering reduced fees, these asset managers hope to gain a competitive edge in securing approval for their Bitcoin ETF products.
The Increasing Probability of Bitcoin ETF Approval
Recent reports indicate that the odds of the spot Bitcoin ETF being approved have significantly increased. The current probability stands at 88 percent by January 15, 2024, as indicated by the trading price of “Yes” shares in the relevant contract. This marks a significant increase from the estimated 50 percent chance at the end of 2023. The SEC is expected to notify the 14 applicants about their approval status soon. These developments have caused Bitcoin’s value to surge over 55 percent since early October, with its price currently standing at $45,258.
Hot Take: The Future of Bitcoin ETFs Hangs in the Balance
The anticipation and rivalry surrounding the SEC’s decision on approving or denying a Bitcoin ETF continue to intensify as we approach the deadline. Asset managers are strategically adjusting their fees to gain an advantage over their competitors in securing approval for their Bitcoin ETF products. Meanwhile, the increasing probability of approval signals growing confidence in the market. The SEC’s notification to applicants will shed light on whether we will see a Bitcoin ETF launch soon. Regardless of the outcome, the impact on Bitcoin’s price and the broader cryptocurrency market will be significant.
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