As the approval of the Bitcoin spot ETF approaches, the markets attention is increasing. Many asset management companies are preparing intensively, and analysts and issuers are predicting that the US Securities and Exchange Commission (SEC) may make a favorable decision on or before January 10.
This decision is not only related to the price changes of Bitcoin, but will also become a turning point for the entire cryptocurrency market. If the adoption of the Bitcoin spot ETF is inevitable, then how should we learn the news of its approval as soon as possible, and what information should we focus on?
How to quickly grasp the dynamics of ETFs?
In addition to turning on push notifications on professional financial news websites of news media, is there any other way to get the news faster than the media?
1. U.S. Securities and Exchange Commission (SEC) official website
you canOn the SEC’s official websiteRegister and fill in your email address to receive official news and decisions about Bitcoin ETF and other related matters as soon as possible. As a regulatory agency, the information released by the SEC is the most authoritative and accurate.
2. Senior industry experts and analysts
Some well-known industry analysts, such as Bloomberg ETF analystsEric BalchunasandJames Seyffart, they have in-depth research and insights on Bitcoin ETFs. Follow their social media to get more professional analysis and predictions, and turn on the little bell to get the news as soon as possible.
3. Market price and trading volume
To be honest, market price is often the fastest signal. Any major news related to the Bitcoin ETF is likely to be quickly reflected in Bitcoins price and trading volume, or even start early. Therefore, paying close attention to changes in market prices and trading volumes is also an important means of obtaining information.
Approval collectively or individually
ETF analysts and issuers unanimously believe that the SEC will make a favorable decision on or before January 10. January 10 is the SEC’s final deadline to decide whether the ETF is approved and whether to approve Sister Mu’s ARK Investment Management LLC and 21 Shares Bitcoin Spot ETF application submitted.
It is difficult for the SEC to only approve a certain Bitcoin spot ETF. Just like the previous launch of Bitcoin futures, if simply approving a certain one may cause a tilt in market share, the ETF launched later will lower some purchasing standards, which will Leading to market capital outflows, the SEC needs to promote and maintain market fairness.
Therefore, in this round of approvals in January, whether the SEC will only approve one or more Bitcoin ETFs is also one of the key points that the market is paying close attention to.
Authorized Participant AP: A key role in the ETF market
Authorized Participant (AP) plays a vital role in the exchange-traded fund (ETF) industry. These are usually large financial institutions, such as investment banks or market makers, who play an integral role in the ETF market and are responsible for maintaining ETF liquidity and market efficiency. The core responsibilities of APs include creating and redeeming ETF shares, which means they have the authority to transact directly with the ETF provider, whether to create new ETF shares or eliminate existing ones.
Additionally, AP plays a key role in maintaining consistency between market prices and NAV. They help ensure that the market price of an ETF is close to the net asset value (NAV) of its underlying assets by creating or redeeming ETF shares when necessary, thereby reducing price deviations and improving market efficiency. AP also serves as a provider of market liquidity, making it easier for investors to buy and sell ETF shares through its creation and redemption activities. As large financial institutions, they are also responsible for managing the market and liquidity risks associated with the creation and redemption of ETF shares.
Given the complexities associated with ETF creation and redemption, APs are typically institutions with a high degree of expertise and market operations capabilities. In situations of high market volatility or low liquidity, the activities of APs are particularly important to ensure the healthy operation of the ETF market. Through the AP mechanism, ETFs can more effectively track the performance of their underlying assets while providing investors with a more stable and reliable trading environment.
According to the latest information, most of the asset management companies that are applying for Bitcoin spot ETFs, including BlackRock, have selected and announced their respective authorized participants.
For example, BlackRock plans to select JPMorgan Securities and Jane Street as its authorized participants. Grayscale CEO posted on social media that Grayscale had already confirmed in the documents submitted in May this year that after GBTC was converted into a spot ETF, Jane Street Capital and Virtu Americas became the authorized traders (Authorized Participants) of its ETF.
Goldman Sachs is approaching BlackRock and Grayscale and negotiating to become an authorized participant (AP) for its spot Bitcoin ETF. According to Nate Geraci, president of The ETF Store, disclosed on social media, following Goldman Sachs, JPMorgan Chase is also negotiating with Grayscale to serve as an authorized participant of its spot Bitcoin ETF.
WisdomTree has submitted the latest version of the revised S-1 filing for its spot Bitcoin ETF, appointing Jane Street Capital as the authorized dealer (Authorized Participant) of its spot Bitcoin ETF. Invesco Galaxy has appointed JP Morgan and Virtu Americas as authorized dealers for its spot Bitcoin ETF, which will charge no fees for the first six months. Fidelity designated Jane Street as an authorized dealer for its spot Bitcoin ETF, which charges a fee of 0.39%.
Fidelity named Jane Street Capital as one of its authorized participants. Invesco/Galaxy selected JPMorgan and Virtu as authorized participants. Valkyrie selected Jane Street and Cantor Fitzgerald as its authorized participants.
This information may change as subsequent approval processes and individual company policies change. But what can be seen is that Jane Street is the choice of almost all these asset management companies.
ETF fees: a key factor influencing investor choice
In the fierce competition among Bitcoin spot ETFs, the ETF rates set by each company are of decisive importance, which not only affects investors choices, but also significantly affects the companys market competitiveness. ETF fees, as the management costs borne by investors, are directly related to the return on investment. Therefore, when choosing ETF products, investors tend to give priority to options with lower fees.
Currently in the market, VanEcks ETF fee standard is 0.25%, leading the way with its low fees, which makes its products more attractive to price-sensitive investors. The low-fee strategy not only improves Fidelitys market competitiveness, but may also force other competitors to adjust their fee structures.
Fidelitys fee standard is 0.39%, and BlackRocks ETF fee standard is 0.3%, with 0.2% for the first 12 months.
Meanwhile, ARK 21 shares charge a fee of 0.25%, with the first 6 months free. Invesco announced that its fee rate would be 0.59%, but also chose to waive the fee for the first six months. It can be said that this is an aggressive market entry strategy aimed at quickly attracting a customer base and increasing market share. Such short-term rate concessions may appeal to investors looking for initial cost efficiencies.
Invesco Investments has also designated JP Morgan and Virtu Americas as authorized dealers of its spot Bitcoin ETF. This cooperation with well-known financial institutions may further enhance the appeal of its products.
At the same time, Fidelity Investments selected Jane Street as an authorized dealer for its spot Bitcoin ETF and kept its low fees unchanged, which reflects its focus on cooperating with high-quality trading partners while maintaining cost competitiveness.
In general, competition in the Bitcoin spot ETF market is not only reflected in the quality of products and services, but also in fee strategies. The level of fee rates directly affects investors’ choices, and in this competitive market, major companies use different fee strategies to attract and retain customers. The effectiveness of these strategies will be verified in future market performance.
Image source:@JSeyffA moment of transformation for GBTC: simultaneously approved to become a Bitcoin spot ETF?
As for whether GBTC will be approved to be converted into a Bitcoin spot ETF on the same day as other companies, this is an important issue that the market is paying attention to. Current signs, including executive social media tweets, company filings, and other public actions and messaging, appear to suggest that GBTC is preparing to make the switch on the same day that other companies are launching Bitcoin spot ETFs. and listing.
As one of the largest Bitcoin trust products on the market, GBTC (Grayscale Bitcoin Trust) currently manages approximately US$27 billion in assets. This scale not only occupies an important position in the cryptocurrency field, but also makes it extremely influential in the entire ETF market. Once GBTC is successfully converted into a spot Bitcoin ETF and listed, it will immediately become a top 60 ETF by AUM, a jump that will have a significant impact on the market.
This conversion of GBTC not only means changes in its product structure and regulatory framework, but may also attract more investors seeking traditional financial products and services. This conversion will transform GBTC from a more closed trust structure to a more open and liquid ETF structure, which is an important attraction for investors who want to invest in Bitcoin through traditional financial channels.
Overall, the conversion and listing of GBTC will be an important milestone for the Bitcoin ETF market, which will not only increase the selection of spot Bitcoin products on the market, but may also promote further maturity and development of the entire industry. If GBTC can be approved for listing on the same day as other companies, this will be an event of great significance to the entire industry. Its influence and market position will bring new vitality and competition to the Bitcoin ETF market.
Fund Size Forecast: The amount of capital that Bitcoin ETF will attract
There are rumors that BlackRock will invest $2 billion. On January 6, Matthew Sigel, VanEck’s head of digital asset research, spoke on Twitter Space and said that according to informed sources, BlackRock has raised $2 billion in funds from existing Bitcoin holders, and these funds hope to Converted to a spot Bitcoin ETF within the first week.
In this regard, Bloomberg ETF analyst Eric Balchunas said that if this is true, $2 billion will break all first-day/weekly trading volume and management scale records for ETFs. It has now learned from another source that BlackRock is indeed ready to put money into the ETF on day one.
In addition, since August last year, Ark Invest began to gradually reduce its position in GBTC. At that time, many people speculated that the reason why the shrewd sister began to reduce her position in GBTC may be to prepare for her own Bitcoin spot ETF fund.
According to ARK Fund position data, ARK Fund reduced its holdings by a total of 146,242 GBTC in October without any purchases. In September, 11,249 GBTC were bought, but 67,494 GBTC were sold. In August, 106,413,910 GBTC were bought, but 108,776,240 GBTC were sold.
By December, according to Bloomberg analyst monitoring, ARK Fund had sold more than 2 million shares of Grayscale Bitcoin Trust (GBTC), liquidated all of its remaining GBTC positions, and used half of its approximately US$100 million to purchase ProShares Bitcoin Strategy ETF (BITO) shares.
Meanwhile, co-founder@ETF_Institute, ARK Invest may invest more than $200 million to replace GBTC in its ARKW.
Although there is no official confirmation of the amount of inflows reported online, after all, the asset management scale of these asset management companies is not a small amount. How much capital will flow in after the Bitcoin ETF is approved is a question worthy of attention.
