Bitcoin Spot ETF applicant BlackRock is ready to get the show on the road, amends S-1 filing within 24 hours
- Bitcoin Spot ETF issuers are competing to offer lower fees on the securities product while awaiting the SEC’s approval.
- Grayscale stands out with the highest fee at 1.5%, while BlackRock, Ark Invest, VanEck or Bitwise offer more competitive rates.
- BTC price eyes rally to the psychologically important level of $50,000 as anticipation surrounding the January 10 deadline builds.
Bitcoin Spot ETF filers are engaged in a fee war, offering competitive rates to attract capital. Bitwise Invest offers the lowest fee at 0.24%, while GrayScale is set to charge the highest fee at 1.5%.
While market participants anticipate the US Securities and Exchange Commission (SEC) to approve one or many spot Bitcoin ETF applications by the January 10 deadline, the founder of the Chamber of Digital Commerce said that the regulator is likely to delay the decision on the securities product.
BlackRock, the largest asset management firm in the world and an applicant in the Bitcoin Spot ETF race, has re-filed their S-1 form based on the comments shared by the Securities and Exchange Commission (SEC).
Senior ETF analyst at Bloomberg, Eric Balchunas said that it is hard to point out the changes at first glance but the important point is that the giant amended the filing with a 24 hour window.
BlackRock's amended S-1 filing. Source: Eric Balchunas' tweet on X
Also read: Bitcoin Spot ETF could see SEC greenlight, Grayscale Investments files amended S-3 sets 1.5% fee
Daily digest market movers: SEC decision on Spot Bitcoin ETF anticipated on Tuesday or Wednesday
- Bloomberg ETF analyst James Seyyfart said that the SEC shared its comments on the amended S-1 filings by issuers.
- The amended filings showed a competitive fee pricing war among issuers, with Bitwise Invest offering the lowest (0.24%) and Grayscale Investments the highest fee (1.5%).
- While the SEC expects more amendments on Tuesday, Seyffart does not necessarily consider it a sign of delay from the US financial regulator. However, Perianne Boring, the founder and CEO of the Chamber of Digital Commerce, considers it a sign of delay in the Bitcoin Spot ETF decision by the SEC, according to her recent tweet on X.
SPOT BITCOIN ETF UPDATE: The SEC just issued additional comments on pending applicant's S-1s. This is a delay signal. #BitcoinETF #bitcoin
— Perianne (@PerianneDC) January 9, 2024
- Eleanor Terret, Journalist at Fox Business, said that she spoke to issuers who received additional comments from the regulator on their S-1 filings. The issuers said the SEC has not conveyed a change of plans.
Just spoke with a couple of people who received additional comments. They say they’re not worried and the @SECGov hasn’t conveyed a change of plans.
— Eleanor Terrett (@EleanorTerrett) January 9, 2024
My sense is that they’re fairly confident this is just part of the process to get everything in before January 10th. https://t.co/B9PvuHo6yX
- Terret shared a list of issuers that are ready to launch their Spot Bitcoin ETF as soon as they get an approval: Grayscale, Ark/21Shares, Blackrock, BitWise, VanEck, WisdomTree, Invesco, Fidelity, Valkyrie and Franklin.
- The SEC's Chairman Gary Gensler recently informed investors of the risks involved in investments in crypto assets in a tweet thread on X:
A thread
— Gary Gensler (@GaryGensler) January 8, 2024
Some things to keep in mind if you're considering investing in crypto assets:
Technical Analysis: Bitcoin price could rally to $50,000
Bitcoin price peaked at $47,200 on Monday amidst rising anticipation of the SEC’s decision on the Spot Bitcoin ETFs. Market participants expect that an approval is imminent, and while most experts believe that the approval is already priced in, BTC price climbed nearly 6% in the past week as the deadline of January 10 draws close.
Bitcoin price has sustained above $42,000 in January, rallying towards the psychologically important level of $50,000. The last time that BTC price was above this level was in December 2021.
Bitcoin will likely face resistance at $48,600, the 61.8% Fibonacci retracement level of the decline from November 2021 to 2022. Once BTC price tackles this resistance, it could rally to the upper boundary of the fair value gap at $50,583, as seen in the chart below.
BTC/USDT 1-day chart
However, a daily candlestick close below the 50% Fibonacci retracement level at $42,349 could invalidate the bullish thesis for the asset.
Crypto ETF FAQs
What is an ETF?
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Is Bitcoin futures ETF approved?
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Is Bitcoin spot ETF approved?
Bitcoin spot ETF has been approved outside the US, but the SEC is yet to approve one in the country. After BlackRock filed for a Bitcoin spot ETF on June 15, the interest surrounding crypto ETFs has been renewed. Grayscale – whose application for a Bitcoin spot ETF was initially rejected by the SEC – got a victory in court, forcing the US regulator to review its proposal again. The SEC’s loss in this lawsuit has fueled hopes that a Bitcoin spot ETF might be approved by the end of the year.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
