Bitwise Bitcoin ETF could debut with initial funding of $200 million.
Bitwise’s spot Bitcoin ETF could debut on the market with an initial funding of $200 million if it receives approval from the U.S. Securities and Exchange Commission (SEC). The value of the investment was mentioned in an update to the regulator’s system last Friday (29), which is the deadline for companies to update their requests.
As Eric Balchunas, senior ETF analyst at Bloomberg, found out, new information from Bitwise wiped out an initial $10 million from BlackRock that he had previously claimed to know about. “This will be a huge help in the early days of (the ETF’s) competition,” Balchunas said of X.
The Bitwise S-1 has been filed and it looks like someone (we wonder who) is seeding $BITB with $200 million, blowing away BlackRock’s $10 million (that we know of). This will be a huge help early in the competition. There are no named APs, but problems may arise soon. pic.twitter.com/hQ7uW9Occo — Eric Balchunas (@EricBalchunas) December 29, 2023
Unlike BlackRock, the world’s largest asset manager, Bitwise did not notify potential players or market makers to seed its ETFs. In response, BlackRock has already advanced names such as Jane Street and JP Morgan as Accredited Participants (APs) in its Bitcoin ETF.
As the clock ticks toward the January deadline for the SEC to approve or reject proposed spot Bitcoin ETFs, the most important points are coming in the coming days.
Bitcoin ETF in 2024
Earlier this month, analysts at Bloomberg Intelligence and JP Morgan claimed that at least one Bitcoin ETF is likely to be approved in January 2024.
This type of ETF is a product that the cryptocurrency industry has been wanting to get approved for US investors for years, and the SEC always reiterates that it poses too many risks to investors, such as market manipulation.
But in recent months, the SEC has not only faced opposing court rulings regarding its refusal to review ETFs, but has also found itself surrounded by criticism from large market players like Coinbase.
But people familiar with the process recently told Reuters, one of the world’s most prominent news agencies, that issuers that meet the year-end filing review deadline “may be able to launch by January 10, the date required by the SEC.” You can either approve or reject the Ark/21Shares ETF,” he explains.
The agency therefore highlights that new products could arrive on exchanges next week once the SEC gives approval to companies competing for spot Bitcoin ETFs. Among the companies that have created products based on the world’s largest cryptocurrency, in addition to BlackRock and Bitwise, VanEck, Valkyrie, Invesco, and Fidelity stand out.
What is a Spot Bitcoin ETF?
Spot Bitcoin ETFs are financial products designed to provide investors with exposure to the actual price of Bitcoin, allowing them to trade and invest in cryptocurrencies without having to own them directly.
This type of ETF is different from futures-based ETFs, which derive their value from Bitcoin futures contracts. Spot Bitcoin ETFs aim to track the real-time market price of Bitcoin, making it more attractive to traditional investors seeking direct exposure to the cryptocurrency.
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