Senators getting in line with amendments on the CLARITY Act, which the Senate Banking Committee is kicking off its mark-up for. The proposed amendments are aimed at stablecoin yield and DeFi regulations. Its result may determine how heavily the bill lands on crypto markets. CLARITY Act Amendments Put Yield and DeFi in the Spotlight The
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]]>Five issuers have submitted amendments filings to the US Securities and Exchange Commission (SEC) seeking approvals for in-kind features on their crypto exchange-traded funds (ETFs). While the SEC has delayed giving its approvals, James Seyffart argues that a crypto ETF will soon receive regulatory blessings for in-kind creation and redemptions. Expert Predicts Crypto ETF To
The post Crypto ETFs May Soon Have In-Kind Feature As Five Issuers File Amendments appeared first on CoinGape.
]]>As the January 10th deadline approaches, major financial players, including BlackRock, Ark, Fidelity, Invesco, Galaxy Digital, WisdomTree, and Valkyrie, have made a decisive move in the race to launch the first spot Bitcoin ETF in the United States. These firms have submitted their final Form S-1 amendments to the Securities and Exchange Commission (SEC), signaling a crucial juncture in the cryptocurrency market’s evolution.
Fee Reductions and Market Implications
Several applicants have announced significant fee reductions for their prospective ETF products in a strategic play to attract investors. ARK & 21Shares, for instance, will waive their 0.25% fee for the first six months post-listing, which applies to the initial $1 billion in transactions.
Similarly, BlackRock has set an initial fee of 0.2% for the first six months or $5 billion in transactions, after which it will rise to 0.30%. These moves highlight the intense competition among issuers to capture market share in this emerging sector.
Bitcoin ETF Potential Approval
The crypto community awaits the SEC’s decision, which is expected in the coming days. Approval of both the exchange filings (19b-4s) and the issuers’ S-1 forms could see these ETFs trading as soon as the next business day. This development is particularly notable given the SEC’s historical reluctance to greenlight such products, largely due to investor protection and market manipulation concerns.
The approval of a spot Bitcoin ETF could mark a significant milestone for digital assets, potentially unlocking billions in retail and institutional inflows. The anticipation of regulatory approval has influenced market dynamics, contributing to Bitcoin’s substantial rally in the previous year.
As the deadline looms, the industry watches closely, aware that the SEC’s decisions in the coming days could reshape the landscape for cryptocurrency investments.
Read Also: Bitcoin ETF Anticipation Contributes To $151 Mln Inflows In Digital Assets
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The Bitcoin ETF race has finally reached as close to the finish line as it can get. All 11 Bitcoin ETF applicants have updated their 19b-4 amendments, with S-1 filings reportedly expected by Monday.
Bloomberg’s Katie Greifeld reported that the SEC had instructed exchanges and issuers to submit their final amendments on Friday for their spot Bitcoin ETF applications. Meanwhile, a vote by the SEC commissioners is anticipated early next week.
Also Read: Spot Bitcoin ETF: Here’s What is on Applicant’s To-Do List
Bitcoin ETF requirements aligned with SEC
Nasdaq filers—BlackRock’s iShares and Valkyrie Bitcoin Fund—were among the first to submit their amended documents. Soon after, filers associated with NYSE and CBOE also started submitting their 19b-4 amendments. Notably, Bitwise, Grayscale, and Hashdex, all from the NYSE, completed their submissions next. CBOE filers that include Invesco Galaxy, VanEck, WisdomTree, Fidelity, Franklin Templeton, ARK Invest and 21Shares also got their documents in ahead of the deadline.
However, as Bloomberg’s James Seyffart points out, these filings do not guarantee approval but represent a significant advancement in the process. Senior analyst Eric Balchunas noted that the final S-1s are due by 8 a.m. on Monday, as per sources. This comes as the SEC reportedly aims for a January 11 launch, with official confirmation still awaited.
A consultation of the SEC with the applicants indicates that the agency has “no additional feedback,” suggesting a possible alignment of requirements for the launch.
Dissent from consumer groups
In contrast to the optimism surrounding these filings, Nathan Geraci of The ETF Store highlights an increase in public comments submitted to the SEC, with some advocating for the rejection of all spot Bitcoin ETFs.
Better Markets, a consumer protection group, has added to this narrative, arguing that the Grayscale court decision should not sway the SEC from its previous stance of denying multiple spot Bitcoin-based ETPs.
https://twitter.com/MattAhlborg/status/1743412739031085403
This flurry of activity indicates an important moment for Bitcoin ETFs with a final decision possibly on the other side of the weekend.
Also Read: Bitcoin ETF: Coinbase’s Involvement Could Spark Delays
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The US securities regulator received a flurry of S-1 filings by Bitcoin Exchange-Traded Fund (ETF) applicants. Invesco Galaxy, WisdomTree, Fidelity and Bitwise joined the group submitting their revised filings to the SEC on Friday, reported Bloomberg’s senior ETF analyst Eric Balchunas.
December 29 marked the last day to amend the spot Bitcoin ETF application with the regulator. BlackRock and Valkyrie also made the submissions on the final day.
Amendments pour in before deadline
All key Bitcoin ETF contenders are seemingly ready for potential approval with unique strategies. Balchunas reported that Invesco Galaxy has waived fees for the first six months and the first $5 billion in assets.
Additionally, Invesco Galaxy has named Virtu and JPMorgan as its Authorized Participants (APs). What is particularly interesting about these amended filings is that APs have been revealed without a mandate.
It was the fourth S-1 amendment by Invesco Galaxy.
WisdomTree followed suit with its fifth amended S-1 filing. It has also reportedly appointed Jane Street as its AP.
Fidelity’s S-1 filing offered a competitive fee structure at 0.39%. It was reported to be the lowest among the lot before Invesco Galaxy jumped in. Like WisdomTree, Fidelity also chose Jane Street as its AP.
Meanwhile, Bitwise’s filing mentions an unnamed entity that is set to inject $200 million into the fund. Balchunas notes that the large funding would dwarf BlackRock’s known $10 million seed money. Bitwise has not yet named its AP, but an announcement might come later.
JP Morgan and Jane Street stand out
On Friday, BlackRock and Valkyrie, both influential players in the financial sector, also updated their S-1 filings. BlackRock, in its fifth amendment, disclosed Jane Street and JPMorgan as its APs. Valkyrie named Jane and Cantor as its APs.
JPMorgan’s involvement as an AP in at least two ETF applications stand out, especially considering CEO Jamie Dimon’s critical stance on cryptocurrency.
This also signals a divergence between the bank’s institutional operations and its leadership’s public views. In the current regulatory environment, JPMorgan’s role will be particularly significant. JPMorgan, known for its strong market presence as an investment bank, can bring a level of credibility and stability to the ETFs it supports.
Similarly, Jane Street has gained the trust of four players as an AP. Jane also has expertise in market-making and trading as a capital market business. It is known to offer efficiency in trading strategies.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
BlackRock, a heavyweight asset manager, and financial firm Valkyrie updated their S-1 filings for a Bitcoin Exchange-Traded Fund (ETF) before the SEC deadline on Friday. The latest updates marked BlackRock’s and Valkyrie’s fifth amendments, respectively.
Bloomberg’s senior ETF analyst, Eric Balchunas, noted that BlackRock disclosed the names of its Authorized Participants (APs) in the document. It named Jane Street and JPMorgan as its APs. This positions BlackRock as the first Bitcoin ETF applicant to reveal its AP details. Within minutes, an update that Valkyrie named Jane and Cantor as its APs in updated S-1 filing hit the news. Along with BlackRock, they are now among the first contenders to officially reveal the APs. As per experts, the S-1 requirements didn’t mandate the applicants to reveal their AP names just yet.
Balchunas noted the ‘irony’ in BlackRock selecting JPMorgan as an AP in the filing, given that JPMorgan CEO Jamie Dimon has been a vocal critic of cryptocurrencies. In previous statements, Dimon has expressed skepticism about crypto, reportedly saying, “If I was the government, I’d close it down.”
Deadline looms with ‘Cash Creates’ Queries
The Securities and Exchange Commission (SEC) had set December 29 as the final deadline for ETF applicants to submit their last amendments for spot Bitcoin ETFs in S-1 filings. The deadline also loomed with questions about the cash-only model. The SEC mandates a “Cash Creates” model for spot Bitcoin ETFs. And many applicants have now adapted to the regulator’s preference.
On Friday, fund manager VanEck also submitted an updated filing for its spot Bitcoin ETF, coinciding with the launch of its new advertising campaign titled “Born to Bitcoin.”
Grayscale Investments, another key player in the spot ETF race, submitted an amended filing to the SEC on Tuesday. This filing came shortly after Barry Silbert, Grayscale Investments’ chairman, stepped down from his role.
Also Read: Bloomberg Analyst Corrects Crucial Spot Bitcoin ETF Misconception
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
As per its recent filing on Wednesday, November 29, asset manager Grayscale has made a few amendments to the agreement of its Grayscale Bitcoin Trust (GBTC) for the very first time since 2018. This will typically help Grayscale to prepare for the launch of its Bitcoin ETF and compete with other players.
Grayscale Pushing for a spot Bitcoin ETF
The goal is to enhance the structure of GBTC in preparation for a potential transition to a spot Bitcoin exchange-traded fund (ETF) and to ensure fair competition with other applicants, including the prominent asset management firm BlackRock.
The proposed changes to the GBTC update, subject to shareholder approval, encompass two key modifications to the trust agreement. Also, this development comes within six days of Grayscale updating its Bitcoin ETF filing.
Of the two proposed modifications, the initial modification permits fees from the previous monthly collection to a daily basis. This adjustment is a structural refinement and does not constitute a reduction in fees, a commitment Grayscale has made, though it has not been finalized, according to a company spokesperson.
Currently, Grayscale imposes a 2% management fee for GBTC, while firms awaiting approval for spot Bitcoin ETFs typically fall within the 0.7%-1% range, as outlined in an analyst report by Matrixport.
The second update allows for the mingling of assets in an omnibus account format, streamlining the creation and redemption of shares, which serves as the fundamental processing mechanism for the ETF. This innovative approach is part of Coinbase Custody’s service. Notably, the BlackRock iShares product and several other spot ETF applicants will also leverage Coinbase Custody.
Implementing the Amendments
Grayscale will implement the proposed amendments without any additional expenses for its shareholders. Additionally, they are not mandatory for the conversion to an ETF, according to the filing. Shareholders have a 20-day window, starting from the filing date on Wednesday, to cast their votes on these proposed updates. In an email to coinDesk, a Grayscale spokeswoman said:
“Today, Grayscale has outlined proposed amendments to GBTC’s Trust Agreement that are intended to provide operational efficiencies that we believe are beneficial to both Grayscale and GBTC. Importantly, this is in our normal course of business, and GBTC remains ready to uplist as a spot Bitcoin ETF to NYSE Arca upon appropriate regulatory approvals.”
Amid all the developments with Bitcoin ETF, the GBTC share price has rallied significantly, up by 278% in 2023. This has further helped to narrow the discount of GBTC and the spot BTC price to the lowest in two years.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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