Anticipating SEC Action, Major Firms Prepare for Bitcoin ETF Decision

• Bitcoin ETF Launch: Wall Street Giants Finalize Filings
• SEC Action Expected Soon
• Pre-emptive Filings Imminent
• BlackRock Initiates Filing Rush
• Fees and Fund Size: Key Differentiators
• Related: BlackRock, Valkyrie Appoint Authorized Participants for Bitcoin ETF

Bitcoin ETF Launch: Wall Street Giants Finalize Filings

The anticipation for the Bitcoin$42,260 -0.64% Exchange Traded Fund (ETF) launch reached a peak on Friday as several Wall Street titans, including Invesco, Fidelity, and BlackRock, along with crypto-focused firms Valkyrie and Bitwise, finalized the paperwork for their ETF offerings. This preparation comes in anticipation of potential action by the Securities and Exchange Commission (SEC). These firms revealed critical details, such as partnership companies and potential fees their Bitcoin ETFs would charge upon approval.

SEC Action Expected Soon

The SEC's approval for a spot Bitcoin ETF, which has been anticipated for years, is expected to occur in early 2024. Over a dozen companies are seeking to penetrate this new market by offering their version of this investable product. These offerings aim to attract investors who prefer to keep their Bitcoin exposure alongside their existing stocks and bonds in their brokerage accounts.

Pre-emptive Filings Imminent

The surge in filings on Friday indicates that these firms are not willing to gamble on the timing. Analysts from Bloomberg have suggested that the SEC is likely to approve multiple issuers concurrently to avert favoritism. As a result, the issuers are making sure all preparations are in order to be in the first group.

BlackRock Initiates Filing Rush

BlackRock initiated the filing rush, announcing JPMorgan and Jane Street as its Authorized Participants, or partnering companies that manage the financial backends related to an ETF. This announcement was quickly followed by other firms.

Fees and Fund Size: Key Differentiators

With minimal differentiation between one Bitcoin ETF and another, the deciding factor could be the fees. Invesco and its partner Galaxy Digital announced they would waive fees for the first six months and the first $5 billion invested. This move undercuts Fidelity, which intends to charge 39 basis points. In addition, the fund size could be a significant factor. Bitwise disclosed it has already secured $200 million in seed capital for its ETF, surpassing BlackRock, which has $10 million at the ready. Investors could also favor one fund over another due to its initial popularity.

Related: BlackRock, Valkyrie Appoint Authorized Participants for Bitcoin ETF

Edited by Jonathan Stoker