Several prominent asset management firms, including BlackRock Asset Management, VanEck, Valkyrie Investments, Bitwise Investment Advisers, Invesco Ltd., Fidelity, WisdomTree Investments, and a joint venture between Ark Investments and 21Shares, have submitted updated filings with the Securities and Exchange Commission (SEC) in the race to obtain regulatory approval for launching exchange-traded funds (ETFs) linked to the spot price of bitcoin. Market observers suggest that a decision from the SEC may be imminent, given the latest developments.
By the close of business on Friday, these asset management firms had provided new documents detailing their arrangements with marketmakers to ensure efficient and liquid trading for their proposed bitcoin ETFs. Insiders familiar with the filing process noted that those issuers meeting their year-end filing revision deadlines might potentially launch by January 10. This date is crucial, as the SEC is required to either approve or reject the Ark/21Shares ETF by then.
Sources, speaking on background due to the confidential nature of the discussions, indicated that the SEC might notify issuers as early as Tuesday or Wednesday of the following week if they have received clearance to launch.
Bitcoin’s price has surged, more than doubling this year and reaching just under $42,000, fueled partly by expectations that the SEC will approve a spot bitcoin ETF soon.
Valkyrie, in its filing, disclosed a management fee of 0.80% on its ETF if the SEC approves the products in the early new year. Ark and 21Shares had previously revealed they proposed to charge the same fee on their own ETF. The Fidelity Wise Origin Bitcoin Fund aims to be the least expensive, with fees of only 0.39%. Invesco plans a 0.59% fee but added a waiver for six months on the first $5 billion in assets attracted by the new fund.
A total of 14 asset managers are vying for SEC approval for spot bitcoin ETFs, marking a significant development in the context of the regulator’s historical rejections over the past decade. Previous rejections were often based on concerns about market manipulation and the inability of issuers to safeguard investors. The SEC has, so far, only approved cryptocurrency ETFs tied to futures contracts on bitcoin and ethereum, traded on the Chicago Mercantile Exchange.
Grayscale Investments and Hashdex, seeking to convert existing products into spot bitcoin ETFs, submitted their updates earlier this month. As of now, the SEC has not responded to requests for comment.
