Cryptocurrency

Bitwise reveals $200M seed fund for spot Bitcoin ETF in updated S-1 filing

Bitwise has also updated its S-1 form submitted by the Dec. 29 deadline set by the SEC and revealed a planned $200 million seed investment for its spot Bitcoin (BTC) exchange-traded fund (ETF).

The amount is 20x larger than the $10 million seed investment recently announced by BlackRock for its spot Bitcoin ETF.

The SEC is expected to announce the first wave of approvals or rejections in early January 2024.

AP unnamed

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, a Senior ETF Analyst at Bloomberg, believes the disparity in seed funding between Bitwise and BlackRock could affect the early stages of competition among ETF issuers and provide an edge to the former.

The upcoming decision by the SEC on Bitcoin Spot ETFs is an important factor for the cryptocurrency market, particularly ahead of the Bitcoin halving event scheduled for April 2024.

Bitcoin is currently trading at $42,478 and remains range-bound between $41,000 and $44,000, according to CryptoSlate data.

The anticipation surrounding the SEC’s decision on Bitcoin Spot ETFs is not just a matter of regulatory compliance. It’s 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 broader range of investors, potentially leading to increased liquidity and stability in the flagship crypto’s prices.

Most applications updated

Most spot Bitcoin ETF hopefuls have updated their S-1 filings with the SEC and are in line for a potential approval on Jan. 10, 2024, at the earliest.

Ark Invest has also yet to name the AP in its filing but has updated the application to include heavy mentions of an AP and how it will function regarding the ETF.

Meanwhile, Valkyrie Investments has named Jane Street Capital and the financial services firm Cantor Fitzgerald as authorized participants in its updated application.

Some firms, including VanEck, have also begun advertising campaigns for the Bitcoin ETF in anticipation of positive news from the SEC in the coming weeks.

Bitwise recently said that it expects the spot Bitcoin ETF to be the most successful financial product in history. With a $200 million seed fund, the company is putting substantial amounts of money behind its prediction.

The firm is also looking to launch a spot Ethereum ETF in the coming months.

Leave a Reply

Your email address will not be published. Required fields are marked *