Expectations are high among U.S. asset managers that the securities regulator will permit spot bitcoin exchange-traded funds (ETFs) to trade. This comes despite a recent fake post on the agency’s social media account that caused confusion by prematurely announcing its approval. BlackRock is reportedly planning to reduce fees on its spot Bitcoin ETF from 0.30% to 0.25%, while Ark Investments and 21Shares have also cut their spot Bitcoin ETF fees from 0.25% to 0.21%.
The Securities and Exchange Commission (SEC) is set to decide on an application by Ark Investments and 21Shares to launch a spot bitcoin ETF. Over a dozen other bitcoin ETF applications, including those from BlackRock, Fidelity, and VanEck, are also awaiting the agency’s approval. These products could significantly impact the bitcoin market by offering institutional and retail investors exposure to the world’s largest cryptocurrency without the need for direct ownership.
Industry insiders expect the SEC to approve many of these products, including the Ark/21Shares’ product. However, the SEC has not disclosed its decision-making process and cannot comment on ongoing applications. A fake post on the SEC’s account announcing approval of all products caused a stir among industry insiders and media, but the SEC quickly debunked and removed the post, confirming that their account had been compromised.
Despite the apparent hack, the process is not expected to be affected. This week, issuers revealed planned fees for their ETFs, typically one of the last details to be finalized before launch. At least three firms have filed or are preparing applications for SEC approval to launch their products on Thursday.
Analysts predict that ETFs could attract $50 billion to $100 billion this year alone, potentially pushing bitcoin’s price to $100,000. Bitcoin has already gained more than 70% in recent months in anticipation of ETF approval. The SEC’s approval of Bitcoin ETFs would mark a significant shift in its stance, as it has rejected these funds for ten years due to concerns about possible market manipulations.
In response to the SEC’s concerns, issuers have implemented strategies to address these issues, including a key collaboration with Coinbase Global, one of the leading cryptocurrency exchanges in the U.S. This partnership involves close coordination with two of the designated exchanges for ETF listings, with the aim of conducting detailed and continuous monitoring of the underlying bitcoin market.
Despite these efforts, some investor advocates strongly oppose SEC approval of these financial products, arguing that the current bitcoin environment presents considerable levels of immaturity and risk. As always, potential investors are advised to conduct their own research before taking any actions related to cryptocurrencies.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | positive |
| Relevance Score | 1 |
| People | Josh Gilbert, Gary Gensler, Andrew Bond, Marcel Knobloch |
| Companies | Crypto News Flash, Standard Chartered, Rosenblatt Securities, BlackRock, Coinbase Global, Ark Investments, 21Shares, VanEck, Fidelity, Securities and Exchange Commission (SEC) |
| Currencies | Bitcoin |
| Securities | Fidelity, BlackRock (BLK.N), VanEck |
