The U.S. Securities and Exchange Commission (SEC) is expected to approve a handful of spot bitcoin exchange-traded fund (ETF) applications on Wednesday, potentially unleashing a wave of trading later this week. On Monday, 10 applicants submitted their final amendments, including Blackrock, which also filed to register its iShares Bitcoin Trust as a security with the regulator.
SEC Poised for Historic Green Light
Market anticipation reached a fever pitch on Monday as investors awaited the SEC's decision. CNBC reported that the securities regulator could unlock the gates for several applicants simultaneously. Reporter Kate Rooney detailed: "Bitcoin ETF is now widely expected to get the green light this week. Two sources close to the process are now telling me it's looking like Wednesday … The SEC is expected to approve a handful of applications at once." She noted that Wednesday is also the deadline for the proposed spot bitcoin ETF from Cathie Wood's Ark Invest and 21shares. If approval happens, trading could begin on Thursday or Friday.
The Wednesday prediction aligns with Blackrock's own expectations. The world's largest asset manager expects the SEC to approve its Ishares Bitcoin Trust on Wednesday. Notably, Blackrock filed Form 8-A on Monday afternoon, officially registering the Trust as a security with the SEC. The asset manager has reportedly lined up more than $2 billion for the launch of its spot bitcoin ETF, signaling strong institutional demand.
Fee War Intensifies Among Issuers
The final amendments revealed a fierce fee war among spot bitcoin ETF issuers. Crypto asset manager Grayscale Investments set the highest fee at 1.5%, while Bitwise offers the lowest fee of 0.24% with a fee waiver for 6 months on the first $1 billion of trust assets. Other issuers are pricing aggressively to capture market share. The firms acting as authorized participants named in the filings include Jane Street, Virtu, JPMorgan, ABN AMRO, Macquarie, Cantor Fitzgerald, and Marex Capital.
Former SEC Chairman Jay Clayton weighed in on CNBC Monday, stating: "I think approval is inevitable, and I think there is nothing left to decide." The market responded with bitcoin surging past $47,000 as optimism over approval mounted. If the SEC approves multiple ETFs on Wednesday, it would mark a historic milestone for the cryptocurrency industry, providing mainstream investors with regulated access to bitcoin.