Anticipation Builds for SEC’s Approval of Spot Bitcoin ETFs

The crypto market is buzzing with optimism as the U.S. Securities and Exchange Commission (SEC) is expected to approve the first batch of Spot Bitcoin Exchange-Traded Funds (ETFs) by January 10, 2024. Bloomberg analyst Eric Balchunas highlights the key to approval: adhering to the SEC’s preferred cash redemption/creation model and confirming Authorized Participants (AP) information, with these updates due by December 29.

Leading Issuers Submit Revised S-1 Forms

In a race against time, major issuers like BlackRock, Fidelity, and others have submitted revised S-1 forms to the SEC, detailing their Authorized Participants (AP), a crucial step in the approval process. Here’s a rundown of the key players:

  • BlackRock: Designated Jane Street Capital and JPMorgan as its APs, already committed to a pure cash redemption model.

  • Fidelity: Chose Jane Street as its AP, offering the lowest total expense ratio of 0.39% among issuers.

  • Valkyrie: Appointed Jane Street and Cantor Fitzgerald as APs, setting a total expense rate of 0.8%.

  • WisdomTree: Also named Jane Street as its AP.

  • Franklin Templeton: The issuer’s AP list is obtainable from the manager or agent, though not explicitly mentioned in the document.

  • Invesco/Galaxy: Selected Virtu and JPMorgan as APs, waiving fees for the first six months.

  • VanEck: Committed to a cash redemption model, specific AP details yet to be disclosed.

  • Bitwise: AP information and expense ratio details are pending, though they disclosed a $200 million investment in BITB.

    Grayscale Designates Jane Street and Virtu as Underwriters

    Grayscale, aiming to transform its Bitcoin Trust (GBTC) into a Spot Bitcoin ETF, announced earlier that Jane Street and Virtu have been its APs since 2017.

The Future of Spot Bitcoin ETFs

The crypto community eagerly awaits the SEC’s decision. If approved, these ETFs could significantly elevate Bitcoin’s price, potentially replicating the bull market surge seen in 2021 when Bitcoin futures ETFs were approved. The involvement of prominent financial institutions as APs underscores the growing mainstream acceptance of Bitcoin and could signal a new era of institutional investment in the cryptocurrency space.