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A "Watershed Moment" for the Cryptocurrency Sector is Approaching!

On Monday, BlackRock, ARK, and several other potential issuers of exchange-traded funds (ETFs) that directly invest in Bitcoin in the United States submitted revised application forms to the U.S. Securities and Exchange Commission (SEC).

Companies such as Fidelity, Invesco, Galaxy Digital, and WisdomTree also submitted revised S-1 filings to the SEC. The regulatory agency is required to take action on at least one of these applications before the local time of January 10th, and insiders in the cryptocurrency industry speculate that the regulator will use this date to immediately announce a series of decisions.

Following the news of the revised filings submitted by various asset managers, Bitcoin reversed its earlier decline and returned to above $45,000.

Before Bitcoin spot ETFs can begin trading, two technical requirements must be met. First, the SEC must sign off on the so-called 19b-4 filing submitted by the ETF's listing exchange, and second, the regulator must approve the related S-1 form, which is the registration application of the potential issuer.

According to foreign media reports, the SEC plans to vote on the 19b-4 filings submitted by two exchanges in the coming days. The regulator may or may not take action on the issuers' S-1 applications around the same time. If the SEC approves both requirements, Bitcoin spot ETFs could begin trading as early as the next trading day.

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A representative of the SEC earlier refused to comment on the status of the applications.

The "Watershed Moment" for Cryptocurrencies!

Supporters of Bitcoin say that an ETF supported by the largest cryptocurrency tokens will represent a "watershed moment" for digital currency assets. Billions of dollars in market funds are "poised to move."

Sources reveal that if successfully listed, BlackRock's spot ETF could see more than $2 billion in capital inflows during the first week of trading.Michael Anderson, co-founder of the crypto venture capital firm Framework Ventures, stated, "The market is still significantly underestimating the potential impact of the approval of a Bitcoin ETF."

Current SEC Chairman and Democrat Gary Gensler, along with his predecessor Jay Clayton, have consistently rejected the introduction of such products due to concerns over investor protection issues and the possibility of market manipulation.

However, since the SEC lost a key legal battle against crypto asset management firm Grayscale Investments in August last year, speculation has been rife that the regulatory agency will have to acquiesce to the launch of these products.

Bets on the regulatory agency's imminent approval of Bitcoin trading have driven Bitcoin's price to surge by approximately 160% last year, but it has yet to return to the all-time high set in November 2021, when Bitcoin reached nearly $69,000.

Currently, the market's expectations for the imminent approval of a Bitcoin spot ETF are quite high, with asset management firms already engaging in a "fee war" in anticipation.

BlackRock stated in a regulatory filing on Monday that its fees would be only 0.3% of net assets, with a 0.2% charge for the first year until its ETF reaches a size of $5 billion.

In response, ARK reduced its planned fees from 0.8% to 0.25% and stated that it would waive fees entirely for the first six months or until it reaches a size of $1 billion. Grayscale plans to reduce its rate from 2% to 1.5%.