The U.S. SEC has approved 11 spot Bitcoin ETFs, allowing issuers like BlackRock and Fidelity to begin trading upon S-1 approval.
Approval Process and Regulatory Considerations
The SEC has expedited the review process to approve 11 spot Bitcoin ETFs. This involves issuers such as Bitwise, Grayscale, and others. The document verifies that these proposals align with the Exchange Act and applicable regulations. Grayscale confirmed it received the necessary approval to uplist GBTC on NYSE Arca. Initially removed from the SEC's website, the document was later restored.
Seed Funding and Competitive Fee Structures
Issuers have secured initial capital for their ETFs. For example, VanEck seeded its ETF with $72.5 million, Bitwise committed $500,000, and BlackRock invested $10 million. Pantera Capital has shown interest in investing $200 million if approved. Fee structures vary, with Bitwise offering zero fees for the first six months or until assets reach $1 billion, then setting a 0.2% fee. BlackRock starts with a 0.2% fee for the first year or until $5 billion in assets, increasing to 0.3% thereafter.
The SEC's approval of spot Bitcoin ETFs marks a significant step for the crypto market, opening new investment avenues and fostering competition through varied offerings and fee structures.
