The Bitcoin ETF Approval: Will the Wait Finally Come to an End?

BlackRock, one of the potential candidates aiming to introduce a spot bitcoin ETF, is allegedly anticipating their request to be granted on Wednesday.

BlackRock’s waiting for approval for its Bitcoin ETF, expected this Wednesday.

📅 Last updated: January 7, 2024 01:31 EST 🕑 Reading time: 2 min

Source: Pixabay / tombark

The moment cryptocurrency enthusiasts have been eagerly waiting for may finally be upon us. Reports suggest that BlackRock, the largest asset manager in the world, is expecting the approval of its spot Bitcoin exchange-traded fund (ETF) application this Wednesday[^1^].

What valuable information does this provide us?

• VanEck’s Head of Research reveals BlackRock’s $2 billion investments poised for Bitcoin Spot ETF.
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• BlackRock is among the contenders seeking approval for a spot Bitcoin ETF[^1^].
• Other companies in the mix include Grayscale Investments, Valkyrie, ARK 21Shares, and Invesco[^1^].
• Critics of cryptocurrencies have raised concerns about the volatility and lack of regulation in the Bitcoin market[^1^].

But wait, there’s more! Q&A with our expert:

Q: What is a spot Bitcoin ETF, and why is its approval significant? A: A spot Bitcoin ETF is an exchange-traded fund that holds actual Bitcoin, making it an attractive investment option for those looking to gain exposure to the cryptocurrency market. Its approval could potentially attract billions of dollars in fresh investments, further legitimizing Bitcoin as an asset class[^1^].

Q: What are the concerns raised by critics of cryptocurrencies regarding Bitcoin ETFs? A: Critics highlight the volatility and lack of regulation in the Bitcoin market as potential risks associated with approving Bitcoin ETFs[^1^].

Now, let’s dig deeper into recent events and trends surrounding the approval of spot Bitcoin ETFs.

Bitcoin Drops 8% after ETF Delay Rumors

On Wednesday, Bitcoin experienced a sudden drop to as low as $40,000 after rumors spread about the SEC potentially rejecting spot Bitcoin ETF applications[^2^]. However, there have been recent rumors suggesting that approval may actually be on the horizon[^2^]. Senior TechCrunch crypto reporter Jacquelyn Melinek has even mentioned the possibility of approval within 24 hours[^2^].

Furthermore, investment management firms, stock exchanges, and the SEC have reportedly been discussing final wording changes on filings for spot Bitcoin ETFs, hinting at a potential approval next week[^2^]. Multiple issuers are expecting to receive final approval of their filings by late Tuesday or Wednesday[^2^].

Holding Strong Amidst Competition

As the SEC comes closer to potentially approving the first Bitcoin ETF, issuers are navigating their way to attract investor interest. Fidelity has set a highly competitive fee of 0.39%[^2^]. Invesco/Galaxy, on the other hand, announced a fee waiver for the first six months of operation and for the first $5 billion in assets held, followed by a 0.59% fee[^2^]. Analyst Eric Balchunas of Bloomberg predicts that BlackRock will likely set its fee at 0.47%[^2^].

Conclusion: a Turning Point for Bitcoin?

The approval of a spot Bitcoin ETF could mark a significant turning point for Bitcoin and the cryptocurrency market. It would open doors for more institutional investors to enter the space, potentially driving the price of Bitcoin even higher. However, it’s crucial to stay aware of the risks associated with investing in cryptocurrencies, given their volatility and regulatory concerns.

In the meantime, let’s brace ourselves for the upcoming announcement and keep a close eye on the Bitcoin market.

References:

1. Matrixport Founder Says Dissemination of Bitcoin ETF Report is Beyond Control
2. Bitcoin Price Crashes Amidst ETF Delay Rumors

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Image source: Pixabay / tombark

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