ETF Edge, January 8, 2024
- The SEC may be on the verge of approving a spot Bitcoin ETF.
- There are 13 applicants for Bitcoin ETFs, including Kathy Wood from Ark Invest and other industry leaders.
Kathy Wood's Application
- Kathy Wood has had discussions and provided detailed answers to the SEC's questions.
- Approval is not certain, but they are feeling hopeful.
Yan Van's Application
- Yan Van also has an application for a spot Bitcoin ETF and has been in discussions with the SEC.
- The SEC commenting on the prospectuses is a positive sign.
Doug Yonas' Perspective
- The NYSE has been working on a potential spot Bitcoin ETF for 10 years.
- The industry is gearing up for potential approval with lead market makers being chosen and filings happening.
Surveillance Sharing Agreements
- Surveillance sharing agreements allow exchanges to share data with regulatory departments to detect fraud and manipulation.
Impact of Bitcoin ETF Approval
- Institutions investing even a small percentage in Bitcoin could have a significant impact on the asset.
- Bitcoin's scarcity value and low correlations to other assets make it appealing to institutions.
Ailia Snider's Thoughts
- A Bitcoin ETF would broaden institutional participation and remove regulatory uncertainty.
- Bitcoin is a complement to gold and offers a new form of technology with potential use cases.
Kathy Wood and Ailia Snider's Future Plans
- Kathy and Ailia plan to launch both Futures and spot product suites for Bitcoin and Ethereum ETFs.
Bob Pisani's Thoughts
- He believes a Bitcoin ETF is a safer way to own Bitcoin compared to the current structure.
- He sees similarities between the potential impact of a Bitcoin ETF and the impact of the gold ETF.
- Kathy Wood's ETF plans to charge 25 basis points and offer free access for the first six months or until the first billion dollars is reached.
- Yan Van did not disclose the fee structure but mentioned it provides part of the profits to Bitcoin developers.
- There are reports of substantial investors lining up for Bitcoin ETFs, but specific details were not disclosed.
Expectations for Approval
- There is a consensus that all 13 Bitcoin ETFs will be approved at once to avoid favoring any issuer.
- Market share is expected to be distributed among the approved ETFs.
- The anticipation for a Bitcoin ETF approval is building, and the industry is preparing for the potential launch.
- Market participants are optimistic about the impact of a Bitcoin ETF and believe it will attract both institutional and retail investors.
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