Cryptocurrency investors and enthusiasts are watching with bated breath as the long-awaited approval of a spot Bitcoin exchange-traded fund (ETF) from the Securities and Exchange Commission (SEC) may come within the next 24 to 48 hours.
Several Filings Under Consideration
Several major asset managers have filed Form S-1 with the SEC for proposed spot Bitcoin ETFs in recent months. This includes BlackRock, the world’s largest asset manager, which expects its application to be approved. The Cboe BZX exchange has also filed forms for potential ETFs from VanEck, WisdomTree, Pando Asset AG, and Franklin Templeton.
Earlier this week, final wording changes were reportedly being discussed by the issuers and the SEC, indicating a possible approval next week. Multiple sources say final approval of the S-1 filings could come as early as late Tuesday or Wednesday.
Spot ETFs vs Futures-Based Products
Spot Bitcoin ETFs that hold actual bitcoin are favored over existing futures-based products, which could bring billions more in new capital flows into the cryptocurrency market. However, critics warn of bitcoin’s volatility and lack of regulation, with Better Markets warning the SEC that approving spot ETFs would be a “significant regulatory mistake.”
Competition Among Issuers
There is competition among firms seeking to launch the first spot Bitcoin ETF, with Fidelity proposing a 0.39% fee and Invesco/Galaxy announcing a 0.59% fee after an initial period. Bloomberg analyst Eric Balchunas predicts BlackRock will target a 0.47% fee.
Price Reaction So Far
Following rumors of potential delays, Bitcoin’s price dropped around 8% to around $40,000. However, approval of the first spot ETF this week could fuel a renewed rally in the cryptocurrency. The decision now rests with the SEC. A decision is expected in the next 24 to 48 hours.