The SEC said it quickly approved a proposal for a spot Bitcoin ETF.

adminJanuary 10, 2024

The Securities and Exchange Commission said in a document uploaded to the SEC website that it quickly approved an offering for 11 spot Bitcoin ETFs, which has now resulted in a 404 error.

The document lists 11 spot Bitcoin ETFs: Bitwise, Grayscale, Hashdex, BlackRock, Valkyrie, BZX, Invesco, VanEck, WisdomTree, Fidelity, and Franklin.

“After careful consideration, the Commission finds that the proposal is consistent with the Exchange Act and the rules and regulations applicable to national securities exchanges thereunder,” the document states.

The document notes that any fraud or manipulation that affects the price of the Bitcoin spot market is likely to affect the price of Bitcoin futures in a similar way. This means that the SECThe arbitrary and capricious manner in which it rejected Grayscale’s initial bid to pivot G. BTC

-1.60%
With ETFs.

“We are pleased to confirm that the Grayscale team has received the necessary regulatory approvals to list GBTC on NYSE Arca, and we will share a press release with additional information shortly,” a Grayscale spokesperson said.

“The Bitcoin ETF approval order appears to have reached the SEC website, but the link no longer appears to be working. That said, this document appears to be accurate to me,” Bloomberg ETF analyst James Seyffart told X.

Earlier today, the Cboe BZX exchange sent a letter to the Securities and Exchange Commission on Wednesday requesting “accelerated registration” for its proposed spot Bitcoin ETF. Hours later, it issued listing notices for six prospective ETFs, saying trading would begin on Thursday. This was prior to SEC approval.

potential influx

Once trading begins, these products may see large inflows. Steven McClurg, co-founder and CIO of Valkyrie Investments he said Valkyrie’s ETF is expected to receive $200 million to $400 million of investor funds, and all participants could see $4 billion to $5 billion in inflows in the first few weeks.

Van Eck estimated $1 billion of funds will arrive within the first few days and $2.4 billion within the quarter. Galaxy Expect $14 billion in the first year. Bitwise said expectation The spot Bitcoin ETF market will reach approximately $72 billion within five years.

On Tuesday, a post emerged claiming that the SEC’s It was soon deleted, with a follow-up post claiming it was not approved and that a spot Bitcoin ETF had not been approved up to that point.

Spot Bitcoin ETF Ready

The issuers have also lined up seed funding for their products. VanEck leads the way with direct investments, noting that he has seeded $72.5 million in a potential spot Bitcoin ETF. Bitwise has seeded $500,000 into the proposed ETF, according to an amended Form S-1, but Pantera Capital has also said it is interested in investing $200 million in the fund if approved. BlackRock has seeded $10 million in a potential spot Bitcoin ETF.

Even before approval, ETF applicants were waging war to see who could offer the lowest fees. Bitwise has the lowest fees at 0.2% for the first six months or up to $1 billion in assets thereafter, down from 0.24% just a few days ago. BlackRock maintained the offer at a 0.2% discount for the first 12 months or until the fund’s asset value reached $5 billion, after which it maintained the offer at a 0.3% discount. Other fees are up to 1.5%.

Update: This article has been updated with additional information.

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adminJanuary 10, 2024