- Major Wall Street institutions sent their S-1 forms as 2023 neared its end.
- Expectations for ETF approval rose, but the price of BTC remained stagnant.
One of the main reasons for BTC's recent growth is the anticipation of various Bitcoins [BTC] ETFs. As the year draws to a close, institutions are getting closer and closer to realizing their ETF dream.
It's raining S-1
In a crucial move, asset management groups BlackRock, Valkyrie and Van Eck have filed amended S-1 forms with the US Securities and Exchange Commission (SEC).
These changes represent a significant overhaul of their original proposals, all aimed at creating Bitcoin (BTC) exchange-traded funds (ETFs) whose ticker symbols reflect Bitcoin's spot price, currently at $42,544.09.
BlackRock's updated filing identifies Jane Street and JPMorgan Securities as “authorized participants” in its proposed spot Bitcoin ETF application.
For comparison: Authorized Participants (APs) are companies that are approved to create and redeem shares in an ETF. They play a key role in maintaining the liquidity of the ETF and ensuring its market efficiency.
BlackRock has clearly stated its intention to adopt an all-cash model, becoming the first user to transact on JPMorgan's Tokenized Collateral Network service on October 11th.
After BlackRock first filed for a spot BTC ETF in June, BlackRock representatives held two meetings with the SEC in December, underscoring the strategic importance of their venture.
Bitwise goes all out
In addition, Bitwise has also filed for an S-1. The recently filed Bitwise S-1 indicates significant commitment, with one individual apparently poised to invest $200 million in $BITB, surpassing BlackRock's known $10 million contribution.
This substantial financial support is expected to provide significant support in the early stages of the competition. While the Authorized Participant (`) is not being announced at this time, it is likely to be announced shortly.
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Bitwise S-1 has been filed and it looks like someone (I wonder who) is raising $BITB for $200M, blowing past BlackRock's $10M (that we know of). This will be a big help in the early days of the race. No ` mentioned, but probably coming soon. pic.twitter.com/hQ7uW9Occo
— Eric Balchunas (@EricBalchunas) December 29, 2023
Afterwards, Fidelity also moved in. Fidelity's recently filed S-1 is notable because it explicitly details its fee structure and was set at a remarkably low rate of 0.39%, its most competitive rate to date.
Additionally, the document identifies Jane Street as an Authorized Participant (`). Fidelity's comprehensive filing demonstrates its willingness to actively participate in the evolving landscape.
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Fidelity's S-1 is so great, it includes the fee, which will be 0.39%, by far the lowest yet, and also lists Jane Street as an `. Fidelity is officially ready to celebrate. pic.twitter.com/Taq32IGB0L
— Eric Balchunas (@EricBalchunas) December 29, 2023
Is your portfolio green? Check out the BTC profit calculator
Bloomberg ETF analyst Eric Balchunas expects the SEC to rule on pending spot Bitcoin ETF filings by January 10, 2024, with potential trading beginning shortly thereafter.
Despite the rising optimism, there hasn't been much movement in BTC price.
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