ETF Edge, January 8, 2024

ETF Edge, January 8, 2024

Introduction

  • 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.

Fee Structures

  • 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.

Investor Interest

  • 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.

Conclusion

  • 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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