The long-awaited approval for a spot Bitcoin exchange-traded fund (ETF) may finally come this Wednesday.
BlackRock, the world’s largest asset manager and one of the contenders seeking to launch a spot bitcoin ETF, is reportedly expecting its application to be approved, according to a report from Fox Business.
BlackRock is among several firms that submitted updated 19b-4 filings on Friday for proposed spot bitcoin ETFs.
Other companies in the mix include Grayscale Investments, Valkyrie, ARK 21Shares, and Invesco. In addition, the Cboe BZX exchange filed forms 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 fresh investments into the cryptocurrency market.
The price of bitcoin has experienced a significant surge in recent months, reflecting the market’s enthusiasm for exchange-traded products that hold actual bitcoin rather than solely speculating on its price through futures contracts.
However, critics of cryptocurrencies have raised concerns about the volatility and lack of regulation in the bitcoin market.
Non-partisan 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 Drops 8% after ETF Delay Rumors
On Wednesday, Bitcoin crashed to as low as $40,000 after a report from Matrixport claimed the SEC is poised to reject spot Bitcoin ETF applications this month.
“Matrix on Target projects a January rejection for Bitcoin Spot ETFs by the SEC, cautioning traders to hedge long exposure,” the company wrote in a recent post on X (formerly Twitter).
However, there have recently been some rumors that approval can come in the near future.
Thursday afternoon, senior TechCrunch crypto reporter Jacquelyn Melinek said that approval could occur within 24 hours.
“Heard from sources extremely close to the matter that the bitcoin spot ETF is going to be approved by the SEC for *multiple* firms’ applications… expecting something tomorrow.”
Furthermore, according to a Reuters report, investment management firms, stock exchanges, and the SEC discussed final wording changes on filings for spot Bitcoin ETFs on Friday, a step that could lead to approval of the funds for the first time next week.
Multiple issuers told the outlet that they expect to receive final approval of S-1 filings by late Tuesday or Wednesday.
With the SEC nearing the potential approval of the first Bitcoin ETF, issuers are vying for an early advantage to capture investor interest.
Specifically, Fidelity has set a highly competitive fee of 0.39%, while Invesco/Galaxy announced a fee waiver for the first six months of operation and for the first $5 billion in assets held, followed by a 0.59% fee.
Analyst Eric Balchunas of Bloomberg has also predicted that BlackRock will likely set its fee at 0.47%.