The United States Securities and Exchange Commission (SEC) provided feedback to potential spot Bitcoin ETF issuers after they submitted their amended S-1 forms on Monday.
While some analysts see this as a possible sign of a delay in the SEC’s potential approval of a Bitcoin ETF, others argue that the regulator’s comments show how swiftly they are processing these requests.
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
A source familiar with ETF developments told CoinDesk that issuers are expected to submit their updated documents this Tuesday, with minor details unlikely to hinder or delay the SEC’s decision.
Potential Spot Bitcoin ETF issuers are vying to offer the most competitive fees
As revealed in the amended forms filed on Monday, contenders for potential spot Bitcoin ETFs are in a competitive race to provide the most attractive fees, aiming to attract a larger investor base.
Last week, VanEck and Bitwise disclosed their willingness to finance their potential spot Bitcoin ETFs with millions of dollars. Bitwise emphasized the participation of influential investors such as Pantera Capital Management LP, who expressed interest in acquiring up to $200 million in Authorized Participant offerings.
BlackRock set its fee at 0.2% for the first year, increasing to 0.3% after reaching $5 billion in assets. WisdomTree opted for 0.5%, while VanEck and Bitwise agreed on 0.25%.
Although firms interested in spot Bitcoin ETFs hurried to submit forms before the SEC’s Monday deadline, they now have to update their terms with the regulator’s latest requests.
Will they manage to do it in time? According to Fox Business journalist Eleanor Terret, due to the SEC’s last-minute requests, there may be a delay in the regulators’ decisions on the ETF. However, Bloomberg Intelligence analyst Eric Balchunas responded to Terret’s comment, stating he doesn’t believe there will be a delay; instead, many are tirelessly working to ensure approval.
I’m sure it’s accurate reading of regs but I’m not worried about. Gensler directed all this. Staff working tirelessly w issuers. Approval is the plan. No reason to complicate it.
— Eric Balchunas (@EricBalchunas) January 9, 2024
It’s worth noting that optimism about potential ETF approval propelled Bitcoin’s price to new highs of $47,100, with many analysts suggesting that ETF approval could inject billions into the market, pushing the BTC price to $250,000.
As of writing this note, the BTC price remains at $46,920 after falling more than 3.3% to a minimum of $45,450 a few hours ago following the SEC’s comments becoming public. The cryptocurrency market is currently experiencing significant volatility due to uncertainty about ETFs. Therefore, it’s best to stay calm and not be swayed by the FOMO prevalent on Wall Street.
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