This week could prove pivotal in the race for Bitcoin spot ETFs, and Nate Geraci, co-founder of The ETF Institute, highlights five key events to monitor. The United States Securities and Exchange Commission (SEC) is at a critical juncture, set to make its final decision on the proposed rule change requests for spot Bitcoin ETF listings from Ark 21Shares and other applicants.
While many experts anticipate approval, Bloomberg’s Senior ETF Analyst, Eric Balchunas, suggests a 5% chance of rejection. With developments anticipated across the spectrum, let’s delve into the potential events highlighted by Nate Geraci.
Critical Moments for Bitcoin Spot ETFs
According to the market analyst, there’s a possibility of receiving updated fee disclosures from major applicants such as BlackRock and Grayscale Investments.
He emphasized the significance of fees in the ongoing competition for spot Bitcoin, as each issuer aims to surpass Fidelity Investments, which has a capped fee rate of 0.39%.
Nate Geraci is also monitoring the SEC’s approval vote scheduled for January 10. Two crucial events are on the horizon: the Division of Trading & Markets endorsing the 19b-4 filings, and the Division of Corporate Finance approving S-1 applications.
If these preceding events unfold as anticipated, the launch of Spot Bitcoin ETF could occur as early as Thursday, January 11.
As reported earlier, BlackRock has approximately $2 billion set aside to kickstart its trading, and Ark Invest has around $200 million to replace the remaining GBTC in one of its investment vehicles. This move is part of its strategy to free up cash in anticipation of a potential SEC approval.
Is Grayscale Investments poised to follow the trend?
Additionally, the analyst anticipates a potential uplisting action by Grayscale Investments for the Grayscale Bitcoin Trust. If the company utilizes its over $27 billion held in GBTC, it could propel the trust into the top 60 ETFs by Assets Under Management (AUM) right upon launch.
Furthermore, the competition for market attention is expected to intensify, with each applicant vying to attract a significant number of traders and investors. The battle in the market has already kicked off, with asset managers such as VanEck and Bitwise rolling out commercials to promote their products.