A decision on the spot Bitcoin ETF is getting closer with reports indicating that staff attorneys from the Division of Trading and Markets at the U.S. Securities and Exchange Commission [SEC] have engaged in discussions with major stock exchanges. These exchanges, including the New York Stock Exchange, Nasdaq, and Chicago Board Options Exchange, are crucial, as the ETFs in question would trade on them. The SEC is urging the exchanges to refine and conclude their 19b-4 filings, submitted on behalf of issuers, which must secure SEC clearance before the ETF can be publicly offered.
The latest developments have fueled optimism that the much-anticipated spot Bitcoin ETF may finally receive approval. Earlier reports from FOX Business suggested that the decision might be imminent, possibly occurring within the week. Although a final determination is pending, insiders suggest that the SEC could commence notifying issuers of approvals as early as this Friday, around or before January 10, potentially leading to trading commencing the following week.
Despite the market’s speculative enthusiasm regarding the impact of spot ETFs, some voices have adopted a cautious stance. Matrix on Target, for instance, projected a potential rejection by the SEC in January for Bitcoin Spot ETFs. Traders are being warned to hedge their long exposure, anticipating a possible 20% drop in Bitcoin prices if the ETF is denied, given SEC Chair Gensler’s known skepticism towards cryptocurrencies. A recent sell-off of BTC, resulting in a 7.2% decline to $40,300 on Coinbase, has added to the apprehension among traders.
Bitcoin ETF Fee Insights
As 2024 unfolds, the anticipation surrounding a spot Bitcoin ETF has reached its zenith. Recent insights have shed light on the fee structures proposed by the creators of two Bitcoin ETFs, offering a glimpse into the financial framework post-approval. Fidelity Investments has specified a 0.39% annual fee for investors in its Wise Origin Bitcoin Trust, while Galaxy/Invesco is poised to charge 0.59% per year for its BTCO fund. Notably, Galaxy/Invesco plans to waive fees for the first six months of the fund’s operation and for the initial $5 billion in assets, including key authorized participants such as JPMorgan.
In the latest update, Fidelity, a $4.5 trillion asset manager, has submitted a securities registration application with the SEC for its spot Bitcoin ETF under the symbol FBTC, as confirmed by Bloomberg analyst James Seyffart. The registration has received approval from the Cboe, but the S-1 filing is still in its preliminary stages, with further progress expected in the upcoming week.