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As 2023 draws to a close, Wall Street is confident that approval for a Bitcoin exchange-traded fund is on the horizon, as several financial companies have filed updated plans for ETFs with the SEC. If a Bitcoin ETF were to be launched soon, applications had to be filed by the end of the year. This list includes major companies such as BlackRock, Invesco, Fidelity, and Valkyrie Investments. The price of Bitcoin has increased an astonishing 154% since the beginning of the year since the price of Bitcoin crashed in 2022 due to the global economic turmoil caused by high interest rate hikes and soaring inflation due to oil prices. .
Financial companies gear up to offer Bitcoin ETFs as 2024 beckons
Following last-minute filings in which financial companies share updates on ETF plans to alleviate some of the SEC’s concerns, sources cited by Reuters say new Bitcoin ETFs will be released by the SEC as soon as next week. It has been explained that there is a possibility that it will be approved. Whether you start at the same time depends on the financial company you get approved for first. Naturally, all those filing applications with the SEC hope to be the first to win approval and take advantage of first-mover advantage to cash in.
Filings from companies like Valkyrie also share details about the ETFs they offer. ETF stands for Exchange Traded Fund and is a stock market investment vehicle that owns commodities, stocks, or other assets. This allows stock market investors to trade their holdings and also includes management fees.
For example, VanEck’s application states that its fund has only one fee. This is his 0.80% sponsorship fee and is subject to the sponsor’s discretion.
The 80 basis points fee is the highest for a new Bitcoin ETF that may soon be available for trading. For example, Fidelity funds have the lowest fees at 39 basis points, while Invesco funds have higher fees at 0.59%, but the company intends to waive fees for the first six months of trading.
Overall, 14 fund managers want to launch Bitcoin products. The world’s major currencies faced a bit of trouble earlier this month when they announced their latest bill to regulate Bitcoin, a bill proposed by Sen. Elizabeth Warren (D-MA).
The bill essentially expands the regulations facing the banking industry to include crypto wallet providers and other related companies. If implemented, this would incentivize banks to verify the source of funds received through crypto wallets, force wallet companies to implement know-your-customer (KYC) requirements, and further regulate non-custodial wallets.
Bitcoin was also in the news over the weekend after Cathie Wood’s Ark Invest bought 4.3 million shares of a Bitcoin futures ETF. Ark has also filed for a Bitcoin ETF and is working with the SEC to address the European Commission’s concerns about market manipulation and fraud. Other companies have faced similar hurdles, including Fidelity, whose paperwork wasn’t comprehensive enough, and who went to court to get the SEC to allow the conversion of its Spot Bitcoin Trust into an ETF. This includes fixed grayscale, etc.
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