The U.S. Securities and Exchange Commission (SEC) is on the verge of making a groundbreaking decision that could change the landscape of crypto investing forever. After more than a decade of rejected attempts, crypto investors are eagerly awaiting the approval of a spot bitcoin exchange-traded fund (ETF). Thirteen companies have filed applications for a spot bitcoin ETF, including Grayscale Bitcoin Trust, Ark/21Shares Bitcoin Trust, Bitwise Bitcoin ETF Trust, and others.
The applications consist of two key components: a 19b-4 filing for a proposed rule change and approval of S-1, which is a filing to register a new security with the SEC. The SEC must approve the rule changes before the product can trade, and it is expected that once the 19b-4 filings are approved, the SEC will then approve the S-1 applications of all the ETF applicants at once.
With 13 companies vying for a bitcoin ETF, there is much anticipation surrounding the fee structure of these products. Fidelity’s Wise Origin Bitcoin Fund will charge 39 basis points, while Invesco’s Galaxy Bitcoin ETF has set its expense ratio at 59 basis points, among others.
The regulatory landscape for the crypto industry remains uncertain, with SEC Chair Gary Gensler engaged in battles against major players in the industry. Gensler has been involved in court cases against Grayscale Bitcoin Trust and Coinbase, pushing for more regulatory oversight in the crypto space. The SEC has also sued Binance and its founder, Changpeng Zhao, alleging violations of securities laws.
As the crypto industry continues to evolve, the decision on the spot bitcoin ETF will be a significant milestone that could pave the way for more institutional investment in the space. Stay tuned for updates on this developing story as the SEC’s ruling draws near.
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