Approval of Bitcoin Spot ETF Reaches a Critical Moment This Week, President of Registered Investment Advisor The ETF Store Nate Geraci Shares His Top Five Concerns
(Background: Bitcoin Spot ETF is Ready! Grayscale, Fidelity, Ark, Valkyrie… Submit “Securities Registration Form” to SEC)
In this article, we will discuss:
– Transparency of fees
– Wednesday as a crucial time
– Funding size of issuers
– Potential conversion of GBTC
– Advertising strategies of issuers
With the market eagerly anticipating the approval of the first Bitcoin Spot ETF by the U.S. Securities and Exchange Commission (SEC) during the critical window period from January 8th to January 10th, Nate Geraci, President of registered investment advisor The ETF Store, shared his top five concerns.
Firstly, Nate Geraci will prioritize the transparency of remaining issuers’ fees. He believes that the importance of fees cannot be underestimated, especially in this competitive landscape. Currently, Fidelity leads with a fee rate of 0.39%, while Invesco has a fee rate of 0.59% (although it is free for the first 6 months).
Additionally, Nate Geraci believes that Wednesday is a crucial time in terms of whether the U.S. Securities and Exchange Commission (SEC) will approve the Bitcoin Spot ETF. The SEC’s Division of Trading and Markets must approve the 19b-4 form (exchange rule change), and the company’s finance department must sign off on the S-1 form (registration statement). He believes that the key lies in obtaining approval for the 19b-4 and is looking forward to it.
If the ETF is launched as expected on Thursday of this week, Nate Geraci is very curious about the funding size of the issuers who are already in line. There are rumors that BlackRock may already have $2 billion prepared. How much will Fidelity, Invesco, and other companies bring? He believes that ARK may purchase over $200 million to replace its GBTC holdings in ARKW.
Furthermore, Nate Geraci speculates whether GBTC will convert/list on the same day as other issuers’ launch. Based on executives’ tweets, filings, actions, and messages, he believes they will move in this direction. He sees this as a significant positive for the market since GBTC currently holds $27 billion in assets. If it is launched, it will automatically become one of the top 60 ETFs based on assets under management.
Nate Geraci will continue to monitor the market marketing strategies of the issuers. Bitwise, Hashdex, and VanEck have already released their advertisements. What are the plans of BlackRock, Fidelity, Invesco, ARK, Grayscale, and other companies? Advertising rules under the 1933 Securities Act (Bitcoin Spot ETF structure) are much stricter, and Nate Geraci expects to see some interesting creativity in this area.
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