BlackRock and Fidelity Bitcoin ETFs: SEC Under Pressure as First Deadline Approaches

• Multiple Bitcoin Spot ETF applications await critical SEC decisions in September 2023.
• BlackRock, Fidelity, VanEck, and others eye potential market dynamics that could follow an approval.

The Countdown to Historic ETF Decisions Begins

Ever since the Bitcoin Spot ETF craze took off on June 15 with BlackRock’s submission to the SEC, the world’s largest asset managers have joined the fray. Now, numerous applications rest on SEC Chairman Gary Gansler’s desk, intensifying the anticipation, especially as Europe has greenlit its first Spot ETF.

Although Bitcoin’s price reflected a modest dip over the past 24 hours, the US market holds significant influence. The mere submission by BlackRock catalyzed substantial growth in Bitcoin’s price. The pivotal question is not if, but how intensely Bitcoin’s price will surge if greenlit, given the potential for the world’s leading asset manager to rocket Bitcoin’s market cap to unprecedented heights. Despite the growing urgency, the SEC is in no rush, following certain deadlines as indicated by Bloomberg Intelligence data.

Awaiting SEC’s Verdict: Major Players and their Deadlines

• ARK 21Shares Bitcoin ETF (ARKB): Cathie Wood’s firm, having been in the queue since June 2021, faced multiple SEC delays. With a resubmission in April 2023, they now brace for a possible decision by November 11th.
• VanEck Bitcoin Trust: As one of the longest waiting applicants since December 2020, VanEck faces its imminent deadline on September 2nd.
• Bitwise Bitcoin ETP Trust: After an initial application in October 2021 and no subsequent approval by June 2023, Bitwise refiled. Their moment of truth: September 1st, 2023.
• BlackRock: iShares Bitcoin Trust: Notably, BlackRock, helmed by Larry Fink, boasts a stellar ETF application record, with the SEC rejecting just one of their numerous submissions. Their upcoming pivotal date is also September 2nd.
• Invesco Galaxy Bitcoin ETF: Having applied on September 21, 2021, this major asset manager pins hopes on a potential approval, with their deadline being September 2nd, 2023.
• Valkyrie Bitcoin Fund (BRRR): With their application from July 2021 and a cheeky ticker symbol, Valkyrie awaits an SEC verdict by September 4th.
• Fidelity: Wise Origin Bitcoin Trust: The global giant, Fidelity, managing over $5 trillion, initially applied when Bitcoin was soaring towards a premature peak of $63,000. A reapplication in June 2023 means they are also gearing up for a decision within the forthcoming weeks.
• WisdomTree Bitcoin Trust (BTCW): Applied since August 12, 2021, WisdomTree seeks an approval with the deadline set for September 2nd, 2023.

While some believe SEC’s endorsement is a matter of time, others speculate that the commission might withhold Bitcoin Spot ETF approvals for years, citing concerns over trading surveillance and vulnerability to fraud in the underlying spot market. However, come September 2nd, 2023, all eyes will be on the SEC’s stance, and should approvals roll out, asset managers will aggressively vie for market shares, potentially bolstering Bitcoin’s price trajectory.