This week might turn out to be the most important in the race for Bitcoin spot ETFs and here are 5 key events to watch, according to Nate Geraci, the co-founder of The ETF Institute.
The United States Securities and Exchange Commission (SEC) faces a crucial juncture this week as it must issue its final decision on the proposed rule change demand from Ark 21Shares and other applicants regarding spot Bitcoin ETF listing.
Though many market experts have postulated that an approval is imminent, there remains a 5% possibility of a rejection according to Bloomberg’s Senior ETF Analyst, Eric Balchunas. With actions expected across the board, here is a dive into Nate Geraci’s potential events to watch.
Key Moments for Bitcoin Spot ETFs
According to the market expert, there is a likelihood of getting updated fee disclosures from top applicants like BlackRock and Grayscale Investments.
He underscored the importance of fees in the ongoing spot Bitcoin competition as every issuer will push to outrank Fidelity Investments whose fee rate is capped at 0.39%.
Nate Geraci is also keeping tabs on the SEC’s approval vote which is likely to take place on January 10. Two key events are in the pipeline here with the Division of Trading & Markets signing off on the 19b-4 filings, and the Division of Corporate Finance approving S-1 applications.
Should these previous events proceed as expected, Spot Bitcoin ETF may be launching as early as Thursday, January 11.
Per earlier reports, BlackRock has about $2 billion to jump-start its trading and Ark Invest has about $200 million to replace the remaining GBTC in one of its investment vehicles as it has been freeing up cash ahead of potential SEC greenlight.
Will Grayscale Investments Join the Trend?
Also, the expert is expecting an uplisting move from Grayscale Bitcoin Trust from Grayscale Investments, and should the firm deploy all its over $27 billion held in GBTC, it can push it into the top 60 ETFs by Asset Under Management (AUM) right at launch.
Lastly, the marketing momentum is bound to grow tougher as every applicant will strive to attract as many traders and investors as possible.
These market wars have already started with asset managers like VanEck and Bitwise already releasing commercials to advertise the product.
