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By Suzanne McGee and Hannah Lang
(Reuters) – Asset management firms hoping to be among the first to win regulatory approval to launch exchange-traded funds (ETFs) linked to the spot price of bitcoin have updated their Securities filings and Exchange Commission on Thursday and Friday, market participants said. a decision from the regulator could be imminent.
By late Friday afternoon, BlackRock (NYSE:) Asset Management, VanEck, Valkyrie Investments, Bitwise Investment Advisers, Invesco Ltd., Fidelity, WisdomTree Investments (NYSE:) and a joint venture between Ark Investments and 21Shares had all submitted applications. new documents to regulators. detailing the arrangements each has made with its market makers to ensure liquidity and efficient trading.
People familiar with the filing process said issuers that have met their year-end filing review deadlines may be able to launch by Jan. 10 — the date the SEC is required to approve or reject the Ark/21Shares ETF.
The SEC could notify issuers as early as Tuesday or Wednesday that they have been cleared to launch the following week, said these sources, who spoke on background given the confidential nature of the discussions.
The price of has more than doubled this year to just under $42,000, fueled in part by expectations that the SEC would soon approve a spot Bitcoin ETF.
If regulators choose to approve spot bitcoin ETFs, then they could notify issuers as early as next week.
Valkyrie also disclosed in its filing that it would levy a 0.80% management fee on the ETF, should the SEC approve the products early in the new year. Ark and 21Shares previously revealed they were proposing to charge the same fees on their own ETFs.
The Fidelity Wise Origin Bitcoin fund is on track to be the cheapest, with fees of just 0.39%.
Invesco announced plans to impose a 0.59% fee, but added in its filing that it would waive the fee for six months on the first $5 billion in assets attracted by the new fund.
There are currently a total of 14 asset managers hoping to finally get SEC approval for spot bitcoin ETFs. Over the past decade, the U.S. securities regulator has rejected several attempts to launch such products, citing fears of market manipulation and the failure of potential issuers to protect investors. To date, the only approved cryptocurrency ETFs have been linked to Bitcoin and Ethereum futures, which are traded on the Chicago Mercantile Exchange.
Grayscale Investments and Hashdex, both of which hope to convert existing products into spot bitcoin ETFs, submitted their own updates earlier this month.
The SEC did not immediately respond to requests for comment.