Fee Plans and Competitive Pricing

On Friday afternoon, well-known brands like BlackRock, VanEck, Franklin Templeton, Grayscale Investments, Invesco Galaxy, and 21Shares turned in their revised filings. Franklin Templeton and VanEck especially revealed their fees: 0.19% and 0.20%, respectively. Senior Bloomberg ETF analyst Eric Balchunas pointed out that these costs are competitive and said, “VanEck is in and so is their charge, which will be 0.20%, which is pretty darn cheap, right around Franklin’s 0.19%.” This competitive pricing strains other companies, like BlackRock, to maintain low prices.

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Seed Funding and Market Forecast

The filings also included seed investments; the sponsor of the 21Shares Core Ethereum ETF, 21Shares US LLC, made a sizeable $340,739 seed investment. Franklin Templeton and Invesco Galaxy both revealed $100,000 starter investments each. These purchases highlight the companies’ dedication and faith in the Ethereum ETF space.

Last month the SEC authorized 19b-4 forms for eight Ethereum ETFs; issuers still need to get their S-1s, often known as S-3s, effective before trading can begin. The SEC earlier in the year authorized five spot bitcoin ETFs with fees ranging between 0.21% and 0.39%.

Balchunas sees a major turning point in the crypto investing scene when these Ethereum ETFs open by July 2.

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Fidelity Investments’ US spot Ethereum exchange-traded fund (ETF) has been added to the Depository Trust and Clearing Corporation’s (DTCC) ETF list.

The fund, called Fidelity Ethereum FD Beneficial INT, was included in the list with the code FETH. It is stated that this fund is not yet active on the list.

DTCC has previously added to its list spot Ethereum ETFs expected to be established by VanEck, Franklin Templeton and BlackRock.

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The US Securities and Exchange Commission (SEC) approved spot Ethereum ETF applications made by BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark Invest, Invesco Galaxy and Franklin Templeton last week. In order for the funds to enter the market, S-1 filings must also be approved.

The post Another Good News for Ethereum from the US appeared first on Coin Engineer.

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10 Years Since the First Application

More than 10 years have passed since the first application to the Securities and Exchange Commission (SEC). On January 10, 2023, the SEC again approved the first regulated spot Bitcoin exchange-traded fund (ETF).

The approval of the Bitcoin ETF was a historic milestone for crypto, but the road was not smooth.

July 1, 2013 (Bitcoin Spot ETF)

It took 4 years to get this application approved. It all started on July 1, 2013, when Gemini co-founders Cameron and Tyler Winklevoss filed the first application for a spot Bitcoin ETF in the United States. However, despite the twins’ efforts and the back-and-forth with the SEC, the agency ultimately denied the application in 2017.

Everyone agreed: Bitcoin was in no way ready for the mainstream.

Grayscale 2017

In 2017, Grayscale launched an investment vehicle called GBTC, an open-ended, private trust for accredited investors. It had already received approval from the Financial Industry Regulatory Authority (FINRA) to trade publicly in 2015. However, it was not an ETF. Today, it is the first publicly traded Bitcoin fund in the United States and is eventually expected to be converted to a spot-based ETF.

Re-Application: The Winklevoss Brothers

The Winklevoss brothers, not to be deterred by their first rejection by the SEC, made a second attempt to get Bitcoin ETF approval. Again, the SEC denied the application, citing the largely unregulated nature of Bitcoin.

Hopes Always Rested on Canada 2021

For years, many people wondered if a spot ETF approval for Bitcoin could ever be achieved until Canada took the lead. According to Bloomberg ETF analyst Eric Balchunas:

• Fidelity Canada launched a spot Bitcoin ETF in 2021, making them the largest asset manager with a Bitcoin ETF at the time.

Companies Sue the SEC 2022

The companies prepared again and applied to the SEC again in 2022. The companies that applied at that time were:

• SkyBridge
• Fidelity
• Bitwise
• Grayscale

The spot Bitcoin ETF applications from the companies’ managers were again rejected by the SEC. In response, Grayscale Investments filed a lawsuit against the SEC after its application to convert GBTC to a spot-based ETF was denied.

ETF Race 2023

In 2023, asset managers BlackRock and ARK Invest joined the race for a Bitcoin ETF. This further increased the hopes that the new Bitcoin investment vehicle would eventually be approved.

August 29, 2023 was the first turning point. US District Court Judge Neomi Rao of the US Court of Appeals ordered the SEC to accept Grayscale’s petition for review.

This was seen as a victory for Grayscale. While the decision did not guarantee the ultimate listing of Grayscale’s spot Bitcoin ETF, it gave the community hope that a spot Bitcoin ETF was on the way.

SEC Response 2024

There were many disputes between the applicant companies and the SEC. By the beginning of January 2024, everything was ready. All the requested files were in the SEC’s possession in a complete manner. On January 9, the SEC’s official X (Twitter) account posted a message stating that the commission had approved the spot BTC ETF applications. However, SEC Chairman Gary Gensler immediately denied the announcement, saying that the SEC had not yet approved the listing and trading of the ETFs, and said that the SEC’s X account had been hacked.

January 10, the Final Day (Bitcoin ETF)

On January 10, Cboe BZX Exchange submitted a letter to the SEC. The letter stated that the BTC ETF proposals for the companies:

• ARK 21Shares
• Invesco Galaxy
• Fidelity
• VanEck
• WisdomTree
• Franklin Templeton

had been approved. At this time, the SEC’s full approval was still pending. This fueled speculation that the SEC could approve multiple proposals from asset managers at the same time.

Approval Time

On the same day, the SEC finally approved the 19b-4 applications from the asset managers. This paved the way for the first regulated spot.

The post Bitcoin ‘s Spot ETF Victory appeared first on Coin Engineer.

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A short time ago, BlackRock’s application caused a rally in BTC prices. However, the application disappeared from the list. After that, the website was temporarily unavailable, leading to various speculations in financial circles. Currently, both BlackRock’s and INVESCO & Galaxy’s applications are current on the DTCC list.

The reason why BlackRock’s application was withdrawn is that it was taken under examination due to intense interest. This shows people followed how closely developments in the world of cryptocurrency.

DTCC plays a critical role in the American ETF market. If an ETF is added to the DTCC list, this means that a brokerage bank has requested the DTCC to act on a specific ETF fund. Also, the DTCC can carry out this transaction at an unspecified date in the future.

While this process is standard for launching an ETF on the market, being listed is not an indication of success in terms of regulatory or other approval processes.

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The post Another Bitcoin ETF Added to DTCC Website! appeared first on Coin Engineer.

The SEC, in its statement following this decision, stated that “The Commission finds it appropriate to set a longer period in order to have sufficient time to assess the proposed changes and any problems that may arise in relation to this.” In addition, ARK21Shares and VanEck have also postponed their ETF applications by the SEC.

Evaluation process for ETF applications should be completed within a maximum of 240 days from the date of entry to the Federal Register.

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Therefore, the SEC could postpone a decision on current applications until the end of 2024. Additionally, considering additional requests for public feedback, there is a chance that they might further delay this decision.

Typically, the SEC can delay decisions by fully using the 240-day period. Therefore, decisions on ETF applications from companies like BlackRock, WisdomTree, Invesco Galaxy, Wise Origin, VanEck, Bitwise, and Valkyrie Digital Assets are expecting to be take by mid-October.

This postponement process leads to a waiting period among investors and companies while allowing for a more detailed examination of applications. While waiting for the results of ETF applications, we will be closely monitoring the upcoming months to see how financial markets will react to these developments.

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The United States Securities and Exchange Commission ( SEC ) has recently announced a postponement in its decision regarding seven prominent applicants seeking approval for a spot Bitcoin exchange-traded fund  ( ETF ) in the United States.

On August 31, the SEC filed a series of documents in which it stated the necessity for additional time to conduct a comprehensive assessment of the proposed rule changes required to permit the listing of spot Bitcoin ETF s on the stock exchange. This delay affects seven applicants, including BlackRock, the world’s largest asset manager, as well as VanEck, WiseOrigin, Invesco Galaxy, WisdomTree, Bitwise, and Valkyrie Digital Assets.

JUST IN: SEC is opting to delay (as expected) on spot bitcoin ETF deadlines pic.twitter.com/W4JjOji6L2

— Eric Balchunas (@EricBalchunas) August 31, 2023

Although the proposed rule change was published on July 19 for public input, the SEC has stayed within the 45-day response period. Opting for an additional 45-day extension, the SEC has shifted the decision date for five applications to October 17. Despite the varying deadlines for these applications, with Bitwise’s deadline set for October 17 and Valkyrie Digital Assets’ deadline for October 19, the language in all the filings remains similar. They indicate that these proposed dates are when the SEC anticipates making a decision to either approve, disapprove, or initiate proceedings to determine whether to disapprove the proposed rule changes.

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Grayscale’s Triumph and Market Uncertainty

Interestingly, this development comes shortly after Grayscale Investments succeeded in appealing an initial SEC decision that rejected the listing of its spot Bitcoin ETF. On August 29, the United States Court of Appeals for the D.C. Circuit ruled in favor of Grayscale, prompting a reevaluation of their application. This victory has led to increased optimism in the market, with Bloomberg analysts now giving a 75% probability assessment for the launch of spot Bitcoin ETF in 2023.

Furthermore, the SEC has recently added another obstacle to the joint spot Bitcoin ETF from Ark Invest and 21 Shares, known as the Ark 21Shares Bitcoin ETF. On August 11, this product faced its third setback in terms of an outcome date, following previous rejections in 2021 and earlier this year.

In summary, the SEC’s decision to postpone its rulings on these six spot Bitcoin ETF applications, along with the Grayscale case developments, has generated significant anticipation and uncertainty in the cryptocurrency market, with market participants eagerly awaiting further regulatory clarity.

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