Long-awaited approval for a Bitcoin spot exchange-traded fund (ETF) may finally come on Wednesday.
BlackRock, the world’s largest asset manager and one of the contenders seeking to launch a bitcoin exchange-traded fund, expects its application to be approved, according to a report. a report From Fox Business.
BlackRock is among several companies that filed updated 19b-4 filings on Friday for its proposed spot bitcoin ETFs.
Other companies in the mix include Grayscale Investments, Valkyrie, ARK 21Shares, and Invesco. In addition, the Cboe BZX exchange filed models for VanEck, WisdomTree, Pando Asset AG and Franklin Templeton last week.
The approval of spot Bitcoin ETFs has been highly anticipated by cryptocurrency enthusiasts, who believe that these funds could attract billions of dollars in new investment into the cryptocurrency market.
The price of Bitcoin has seen a significant rise in recent months, reflecting the market’s enthusiasm for exchange-traded products containing actual Bitcoin rather than just speculation on its price through futures contracts.
However, critics of cryptocurrencies have raised concerns about volatility and lack of regulation in the Bitcoin market.
The nonpartisan nonprofit Better Markets, which advocates for increased financial regulation, wrote a letter to the U.S. Securities and Exchange Commission (SEC) stating that approving spot bitcoin ETFs would be a “regulatory mistake of historic proportions.”
Bitcoin falls 8% after rumors of ETF delay
Wednesday, Bitcoin crashed to a low of $40,000 After a report from Matrixport claimed that the SEC is poised to reject spot Bitcoin ETF applications this month.
“Matrix on Target expects rejection of Bitcoin Spot ETFs by SEC in January, warning traders against hedging long exposure,” the company wrote in a recent post on X (formerly Twitter).
However, some rumors have recently surfaced that approval may be coming in the near future.
On Thursday afternoon, Jacqueline Melinek, chief cryptocurrency correspondent at TechCrunch, said: He said This approval can be done within 24 hours.
“We heard from sources very close to the matter that the Bitcoin Spot ETF will be approved by the SEC for *multiple* corporate applications…and we expect something tomorrow.”
Furthermore, according to a Reuters report, investment management firms, stock exchanges and the SEC discussed final wording changes on spot bitcoin ETF applications on Friday, a move that could lead to the funds being approved for the first time next week.
Several issuers told the outlet they expect to receive final approval for their S-1 filings by late Tuesday or Wednesday.
As the Securities and Exchange Commission (SEC) moves closer to potentially approving the first Bitcoin ETF, issuers are vying to gain an early advantage to attract investor interest.
Specifically, fidelity was rated high Competitive fee 0.39%while Invesco/Galaxy announced a fee waiver for the first six months of operation and for the first $5 billion of assets held, followed by a 0.59% fee.
Bloomberg analyst Eric Balchunas also predicted that BlackRock would likely set its fees at 0.47%.