A recent report from Reuters suggests that the US Securities and Exchange Commission (SEC) is likely to notify asset managers seeking to launch a spot Bitcoin ETF (exchange-traded fund) about the approval status of their applications as early as next week. This news comes ahead of the January 10 deadline for the SEC to make a decision regarding the ETF application filed by Ark Invest and 21Shares.
The SEC is expected to notify the 14 Bitcoin ETF applicants whether their applications have been approved or not by Tuesday or Wednesday next week. Asset managers that met the filing revision deadlines by the end of the year have a chance to launch their ETFs by January 10, 2024. Various prominent firms, including BlackRock, Van Eck, Bitwise, WisdomTree, Invesco, Valkyrie, and Fidelity, have recently updated their filings with the SEC.
Fidelity Investments stands out by providing more detailed information about its prospective ETF product in its S-1 form update. It aims to attract investors by proposing a sponsor fee as low as 0.39%, which is the lowest among all the applicants. Invesco, on the other hand, has announced a rate of 0.59% and plans to waive fees on the first $5 billion in assets for the first six months after launch. BlackRock, the world’s largest asset manager and a leading contender in the Bitcoin ETF race, has revealed Jane Street Capital and JP Morgan Securities as its authorized participants.
A New Year, New Approvals
The SEC’s recent actions imply that it is eager to conclude the Bitcoin ETF deliberation process as soon as the new year begins. The Reuters report adds optimism to the possibility of the agency approving multiple ETF applications by the January 10 deadline. Many have speculated about the potential effects of ETF approval on the value of Bitcoin.
Greeks.live, an options platform, has provided insights into the anticipated impact of the exchange-traded fund on the premier cryptocurrency’s value. According to them, the market has already priced in the potential approval of the Bitcoin ETF, suggesting that it may not result in significant price movements. The lack of volatility observed in major term implied volatilities (IVs) and the price of Bitcoin supports this notion.
The decrease in options implied volatility on January 12, which is believed to be closely correlated with the Bitcoin ETF, indicates that the news of the ETF approval may not have a substantial impact on the Bitcoin price. Despite the anticipation, the price of Bitcoin has seen only a marginal increase of 0.4% in the past day, currently standing at $42,154. However, it is worth noting that Bitcoin has experienced a significant surge of more than 150% throughout the year, partially driven by expectations of a Bitcoin spot ETF.
With the SEC expected to provide notification to the Bitcoin ETF applicants regarding the status of their applications in the coming week, the crypto community eagerly awaits the outcome. While the market has already factored in the potential approval of the ETF, it remains to be seen whether the decision will have a significant impact on the price of Bitcoin. As investors and enthusiasts continue to monitor the developments, it is crucial to conduct thorough research and consider the associated risks before making any investment decisions.
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