A heightened sense of anticipation prevails among market participants, fueled by the frenetic efforts of major asset management firms vying for regulatory approval to launch the inaugural spot Bitcoin exchange-traded funds (ETFs) in the United States. Renowned entities such as Blackrock, Vaneck, Valkyrie, Bitwise, Invesco, Fidelity, Wisdomtree, and the collaborative venture of Ark Invest and 21shares have all diligently revised their filings with the US Securities and Exchange Commission (SEC).
This collective endeavour unfolded last Friday, marking a crucial step toward realising the first spot Bitcoin ETFs in the US. Notably, the initial deadline for the proposed spot Bitcoin ETF by Ark Invest and 21shares looms on January 10, sparking widespread expectations that the SEC might greenlight multiple spot Bitcoin ETFs by that pivotal date.
According to undisclosed sources familiar with the filing process, Reuters disclosed last week that the SEC could potentially issue notifications to issuers as early as Tuesday or Wednesday, signalling their clearance to launch in the subsequent week.
Fee structures for these prospective spot Bitcoin ETFs are also taking discernible shapes, with Valkyrie boldly declaring a 0.80 per cent management fee, mirroring the proposed rate by Ark Invest and 21shares. Fidelity, on the other hand, aims to undercut competitors by offering a remarkably low 0.39 per cent fee for its Wise Origin Bitcoin Fund. Meanwhile, Invesco presents a 0.59 per cent fee, accompanied by a six-month waiver for the first $5 billion in assets.
In their filings on Friday, Bitwise outlined plans to seed its spot Bitcoin ETF with $200 million, while Blackrock unveiled its intention to seed its ETF with $10 million on January 3. Notably, JPMorgan has been designated as the lead authorised participant for Blackrock's ETF, despite the consistent negative stance expressed by JPMorgan CEO Jamie Dimon.
Simultaneously, as the deadline approaches for the SEC to decide on the approval of a spot Bitcoin ETF, Coinbase asserts its meticulous preparations to act as a custodian for BTC held by potential spot Bitcoin ETF issuers.
Several spot Bitcoin ETF applicants, including Blackrock, Ark Invest, Bitwise, Wisdomtree, and Invesco, have designated the Nasdaq-listed crypto platform as their preferred custodian for Bitcoin. A spokesperson from Coinbase conveyed to Bloomberg on Friday:
"We have extensively prepared for ETF approval… Our systems have been designed and tested to handle added trading volume, increased liquidity and general increases in demand on our systems."
The spokesperson also confirmed the recent departure of Coinbase Global Inc.'s head of custody, Aaron Schnarch, who has been succeeded by Rick Schonberg.
Currently, the SEC is evaluating 13 proposed spot Bitcoin ETFs, with the initial deadline for the joint application from Cathie Wood's ARK Invest and 21shares set for January 10. The prevailing expectation within the financial sphere is that the SEC may approve multiple applications by the imminent deadline, considering the regulatory body's directive for spot Bitcoin ETF issuers to submit amended filings by the previous Friday for consideration in the early January decisions.
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