Major Asset Managers Race for SEC Approval on Bitcoin Spot ETFs

These filings detailed the arrangements each firm has made with their marketmakers to ensure efficient and liquid trading.

Several asset management firms are eagerly awaiting regulatory approval to launch exchange-traded funds (ETFs) linked to the spot price of Bitcoin.

In a flurry of activity last Thursday and Friday, major players such as BlackRock Asset Management, VanEck, Valkyrie Investments, Bitwise Investment Advisers, Invesco Ltd., Fidelity, WisdomTree Investments, and the joint venture between Ark Investments and 21Shares all submitted revised filings to the Securities and Exchange Commission (SEC).

These filings detailed the arrangements each firm has made with their marketmakers to ensure efficient and liquid trading.

Insiders familiar with the filing process suggested that firms meeting the end-of-year filing deadlines could potentially launch their ETFs by January 10.

This date coincides with the SEC’s deadline for either approving or rejecting the Ark/21Shares ETF.

Sources with knowledge of the matter hinted that the SEC might notify issuers as early as Tuesday or Wednesday regarding clearance for a launch the following week.

Bitcoin’s price has surged, more than doubling this year to nearly $42,000, largely driven by the anticipation of SEC approval for a spot Bitcoin ETF.

If the regulators do give their nod to spot Bitcoin ETFs, they could convey this decision to issuers as soon as next week.

In its filing, Valkyrie disclosed that it would impose a management fee of 0.80% on the ETF if the SEC approves it early in the new year.

Ark and 21Shares had previously announced the same fee structure for their ETF.

The Fidelity Wise Origin Bitcoin Fund stands out as the least expensive option, charging a mere 0.39% in fees.

Invesco, on the other hand, outlined its plans to implement a 0.59% fee but also stated in its filing that it would waive this fee for the first six months on the initial $5 billion in assets the fund attracts.

Currently, there are a total of 14 asset managers vying for SEC approval of spot Bitcoin ETFs.

Over the past decade, the SEC has rejected numerous attempts to launch such products, citing concerns about market manipulation and the ability of issuers to protect investors.

Up to now, the only cryptocurrency ETFs approved have been linked to Bitcoin and Ethereum futures contracts traded on the Chicago Mercantile Exchange.

Grayscale Investments and Hashdex, which aim to convert existing products into spot Bitcoin ETFs, submitted their own updates earlier in the month.

As of now, the SEC has not issued any immediate response to requests for comment on these developments.