Bitwise also has update its Form S-1 submitted before the SEC’s December 29 deadline and revealed a planned $200 million seed investment for its spot Bitcoin (BTC) exchange-traded fund (ETF).
The amount is 20 times larger than BlackRock’s recently announced initial investment of $10 million for its spot Bitcoin ETF.
The SEC is expected to announce the first wave of approvals or rejections in early January 2024.
Bitwise has not yet named its Authorized Participant (AP) for the ETF, unlike BlackRock, which has named Jane Street and JP Morgan for the role. Details regarding Bitwise’s authorized participants are expected to be released soon.
Eric Balchunas, senior ETF analyst at Bloomberg, believes the disparity in seed funding between Bitwise and BlackRock could affect the early stages of competition between ETF issuers and give the former an advantage.
The upcoming SEC decision on Bitcoin Spot ETFs is an important factor for the cryptocurrency market, especially ahead of the Bitcoin halving event scheduled for April 2024.
Bitcoin is currently trading at $42,478 and remains in a range between $41,000 and $44,000, according to data from CryptoSlate.
The anticipation surrounding the SEC’s Bitcoin Spot ETF decision isn’t just about regulatory compliance. It is also seen as a potential catalyst for the next phase of growth and adoption in the cryptocurrency market.
The approval of these ETFs could open the doors to a wider range of investors, potentially leading to increased liquidity and price stability of the flagship crypto.
Most apps updated
Most spot Bitcoin ETF hopefuls have updated their S-1 filings with the SEC and are in line for potential approval on January 10, 2024, at the earliest.
Ark Invest has not yet named the AP in its filing, but has updated the application to include numerous mentions of an AP and how it works with respect to the ETF.
Meanwhile, Valkyrie Investments has named Jane Street Capital and financial services firm Cantor Fitzgerald as authorized participants in its updated application.
Some companies, including VanEck, have also launched Bitcoin ETF advertising campaigns in anticipation of positive news from the SEC in the coming weeks.
Bitwise recently stated that it expects the spot Bitcoin ETF to be the most successful financial product in history. With a seed fund of $200 million, the company is investing substantial sums to support its forecasts.
The company also plans to launch an Ethereum spot ETF in the coming months.