Blackrock, the world’s largest asset manager, expects the U.S. Securities and Exchange Commission (SEC) to approve its spot bitcoin exchange-traded fund (ETF), the iShares Bitcoin Trust, this Wednesday, January 10. According to a Fox Business report, the asset manager has lined up over $2 billion in capital for the launch. The SEC’s decision deadline for the joint proposal by Ark Invest and 21shares also falls on January 10, and analysts widely anticipate a wave of approvals.
11 Spot Bitcoin ETFs in the Pipeline
Currently, 11 spot bitcoin ETFs are competing for SEC approval. Apart from Blackrock’s iShares Bitcoin Trust, the other applicants include Grayscale Bitcoin Trust, Ark 21shares Bitcoin ETF, Bitwise Bitcoin Trust, VanEck Bitcoin Trust, WisdomTree Bitcoin Trust, Invesco Galaxy Bitcoin ETF, Fidelity Wise Origin Bitcoin Trust, Valkyrie Bitcoin Fund, Hashdex Bitcoin ETF, and Franklin Bitcoin ETF. All 11 issuers submitted their final 19b-4 proposals to the regulator on Friday, signaling readiness for trading. Once the SEC greenlights both the 19b-4 rule changes and the S-1 registration statements, the ETFs can commence trading immediately.
Blackrock has named Jane Street and JPMorgan as the authorized participants for its iShares Bitcoin Trust. Authorized participants play a crucial role in the ETF ecosystem by facilitating the creation and redemption of fund shares, ensuring market liquidity and price alignment with the underlying asset.
Market Sentiment and Opposition
While anticipation runs high, not everyone supports the approval. Nonprofit organization Better Markets sent a last-minute letter to the SEC warning of potential “financial carnage” and massive investor harm, urging the regulator to reject all spot bitcoin ETFs. However, industry insiders largely dismiss these concerns. VanEck’s digital assets director noted that investors often overlook the long-term transformative impact of spot bitcoin ETFs, which could unlock billions in mainstream capital.
SEC Chair Gary Gensler has repeatedly voiced concerns about fraud and manipulation in the bitcoin market. Yet proponents argue that comprehensive surveillance-sharing agreements submitted by applicants have addressed these issues. If approved, spot bitcoin ETFs would allow traditional investors to gain exposure to bitcoin through regulated securities accounts, eliminating the need for self-custody or crypto exchange accounts. Analysts estimate that trillions of dollars in U.S. retirement and pension funds could eventually flow into the crypto market through this channel.
Bitcoin briefly topped $47,000 over the weekend, the highest since April 2022, reflecting growing optimism. The SEC’s decision this Wednesday is widely viewed as a watershed moment that could redefine bitcoin’s role in global finance.