Cryptocurrency enthusiasts are excited for a significant decision from the U.S. Securities and Exchange Commission (SEC) on the approval of spot bitcoin exchange-traded funds (ETFs) after several years of rejections.
The process involves two main components: the 19b-4 filing by exchanges including NYSE, Nasdaq, and Cboe, which informs the SEC of proposed rule changes and a deadline of January 10 for the Ark/21Shares Bitcoin Trust, and the approval of S-1 filings, unique to each company applying for a spot bitcoin ETF. It is expected that the SEC will approve 19b-4 filings first, followed by separate approvals for S-1 applications.
Among the 13 companies competing for a Bitcoin ETF, fee structures have become a focal point. Fidelity’s Wise Origin Bitcoin Fund, Invesco’s Galaxy Bitcoin ETF, Ark/21Shares, and Valkyrie have disclosed varying basis points for their fees, while Grayscale Bitcoin Trust commits to reducing fees upon approval of its ETF application.
*BLACKROCK AND GRAYSCALE GEAR UP FOR #BITCOIN ETF MARKET ENTRY AS SEC DECISION LOOMShttps://t.co/ugeG3bA8UL
— Investing.com (@Investingcom) January 7, 2024
The regulatory landscape is underlined by SEC Chair Gary Gensler’s ongoing battles with the crypto industry. Legal precedents, such as the SEC’s loss against Grayscale last summer, highlight the regulatory challenge. While Bitcoin is classified as a commodity, the regulatory status of other cryptocurrencies remains uncertain, prompting the SEC’s use of enforcement to establish authority.
Ongoing legal cases against major exchanges like Coinbase and Binance further emphasize the SEC’s assertive stance. As the crypto community eagerly awaits the SEC’s decision on bitcoin ETFs, the potential impact on the industry is recognized, with the hope that a positive outcome will pave the way for new opportunities and innovations in cryptocurrency investment.
Image Source: Pierre Borthiry – Peiobty@Unsplash
