The U.S. Securities and Exchange Commission (SEC) is nearing a decision on the approval of spot bitcoin exchange-traded funds (ETFs), putting asset managers, including BlackRock, Ark Investments, and 21Shares, on high alert. A false report of the SEC approving 11 Bitcoin ETF applications caused a spike in market volatility, pushing the Bitcoin spot price to around $48,000 before dropping to around $45,000 as the SEC clarified the misunderstanding.
Despite the confusion, several industry executives expressed confidence in the approval of the Ark/21Shares product and other similar ETFs, such as those from BlackRock and VanEck. These financial managers have been adjusting their management fees to attract the most capital. BlackRock, for instance, adjusted its fees from 0.30% to 0.25% in the first year following the product’s launch, while Ark adjusted its fees to around 0.20%.
The SEC is expected to bring clarity on the spot Bitcoin ETF today. The approval would represent a significant shift in the institutionalization of Bitcoin, potentially drawing substantial investment into the sector. Analysts from Standard Chartered predict these ETFs could attract between $50 billion to $100 billion in 2023 alone, potentially pushing Bitcoin prices to unprecedented highs.
The SEC has hesitated to endorse Bitcoin ETFs for over a decade due to concerns over alleged “market manipulation.” However, a recent federal court ruling on the Grayscale Bitcoin Trust (GBTC) and issuers’ efforts to address these concerns have reignited hopes for approval. If approved, Grayscale will launch their spot BTC ETF with the highest fees at 1.5%.
As a result of the false report, representatives from the US Senate issued letters demanding an investigation and an explanation from the regulator. Bill Hagerty from the Appropriations and Foreign Relations Committees stated that just like the SEC would demand accountability from a public company if they made such a colossal market-moving mistake, Congress needs answers on what just happened.
When the SEC finally approves the BTC spot, ETFs could cement Bitcoin’s status as a legitimate asset class, attracting more investors and potentially reshaping the financial landscape. However, the SEC’s stance on cryptocurrency regulation remains critical in this evolving narrative, and a window of uncertainty, while small, remains.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Gary Gensler, Bill Hagerty, Meltem Demirors |
| Companies | Standard Chartered, Tradingview, BlackRock, Grayscale, US Senate, Ark Investments, 21Shares, U.S. Securities and Exchange Commission, Reuters, Appropriations and Foreign Relations Committees |
| Currencies | Bitcoin |
| Securities | None |
