- Asset managers including VanEck, Valkyrie, and Bitwise have filed for spot Bitcoin ETFs, facing scrutiny from the SEC over manipulation and custody concerns.
- Major players are confident the SEC will approve a spot Bitcoin ETF this week, with trading expected to start on Jan. 11 according to VanEck and Valkyrie CEOs.
- Approval is expected to boost Bitcoin’s price and mainstream adoption, with ETF issuers dropping fees to compete for assets.
The race for a spot Bitcoin exchange-traded fund (ETF) in the U.S. appears to be nearing the finish line. Major players in the crypto industry have voiced optimism that the Securities and Exchange Commission (SEC) will finally approve the long-awaited product this week.
Background on Spot Bitcoin ETF Filings
Several asset managers, including VanEck, Valkyrie, and Bitwise have filed proposals for spot Bitcoin ETFs. The filings have faced scrutiny from the SEC over concerns around manipulation and custody of the underlying asset. However, the latest round of applications has seen more engagement from the SEC, with detailed questions asked of the issuers.
Confidence in Approval This Week
Speaking on CNBC‘s ETF Edge on Jan. 9, VanEck CEO Jan van Eck said he expects trading to begin on Thursday, Jan. 11. Valkyrie CIO Steven McClurg echoed a similar timeline. Ark Invest’s Cathie Wood noted the SEC’s probing questions signal preparation for approval. Grayscale’s lawyers also hinted at finalizing paperwork. Bloomberg’s Eric Balchunas puts the odds of denial at just 5%.
Impact on Bitcoin Price and Fees
Bitcoin has climbed 14% since Jan. 3 in anticipation of ETF trading. Bitwise has dropped its proposed fee to 0.2% to compete, with no fee on the first $1 billion. Analysts expect ETFs to trade at a premium to spot BTC. In-kind redemptions may be enabled later to minimize premiums.
Conclusion
Despite previous rejections, crypto leaders are more confident than ever that the SEC will finally allow spot Bitcoin ETFs in the U.S. The long-awaited products would provide easy and regulated exposure to bitcoin for mainstream investors. All signs point to a historic week for bitcoin adoption.
