In a potentially transformative move for cryptocurrency investment in the United States, the Securities and Exchange Commission (SEC) is poised to announce its verdict on a fleet of applications for a spot Bitcoin exchange-traded fund (ETF). Groundbreaking reports reveal that the financial watchdog could communicate its decisions as soon as next week, setting the stage for what could be a landmark development in digital asset trading.
Predictions suggest that the imminent announcements will address the collective anticipation of 14 eager Bitcoin ETF applicants, who could receive the SEC’s green light by Tuesday or Wednesday, the week ahead. These determinations will be made in advance of a mandated deadline—the 10th of January has been set as the pivotal day by which the SEC must conclude on the ETF application fronted by Ark Invest and 21Shares.
Insider sources intimate that asset management firms that adhered to the stipulated timelines for filing revisions by the close of the year may commence their ETF operations as early as January 10, 2024. Among those that have refreshed their applications with the SEC are prominent names in finance, including Black Rock, Van Eck, Bitwise, WisdomTree, Invesco, Valkyrie, and Fidelity.
Drawing particular attention, Fidelity Investments has laid out a comprehensive blueprint of its proposed ETF in a recent S-1 form amendment, touting a competitive edge with a sponsor fee poised at a mere 0.39%. This aggressive fee structure is designed to attract investors and gain precedence over its rivals.
On a similar competitive note, Invesco declared a 0.59% sponsor fee, accompanied by a generous waiver for the initial $5 billion in assets managed within six months post-launch. Additionally, BlackRock, the behemoth of asset management, disclosed its partnership with Jane Street Capital and JP Morgan Securities as authorized participants in its updated Bitcoin ETF proposal.
These developments signify the SEC’s forward momentum to conclude on the Bitcoin ETF discussions as the new year ushers in. Reuters’ insightful report imparts a renewed sense of hope for the cryptocurrency community, eagerly awaiting the agency’s multiple ETF approvals.
Speculation is rife on how the sanctioning of a Bitcoin ETF could recalibrate the cryptocurrency’s valuation. Analytical insights from the options domain, provided by Greeks.live, have been central to understanding the potential repercussions. This data suggests that the market might have preemptively incorporated the likelihood of ETF approvals, indicating that such an event may not result in any substantial financial windfall for Bitcoin.
Notably, Greeks.live’s assessment rests on the observed stability in the major term implied volatility metrics and the Bitcoin price trajectory. This implies that the marketplace is not forecasting drastic fluctuations for Bitcoin, even with the ETF outcomes pending. Paradoxically, on January 12, options implied volatility, expected to ascend amidst such material events, contracted instead.
Bitcoin is currently trading at $42,154, marking an inconspicuous 0.4% ascension on the day. However, the anticipation of a spot Bitcoin ETF has contributed to its price more than doubling this year, showcasing the intrinsic interconnectivity between regulatory milestones and market performance.
