US regulators are considering approving spot bitcoin ETFs, which could benefit Ark Invest and 21Shares in quickly accumulating assets, as per Bloomberg Intelligence analysts. The Grayscale Bitcoin Trust (GBTC) may also have an advantage with its current asset base of around $23 billion. The US Securities and Exchange Commission is expected to make a decision on the Ark 21Shares Bitcoin ETF (ARKB) by Jan. 10, with the possibility of approving other similar offerings at that time. However, the regulator may also choose to deny these applications.
Experts believe that a bitcoin ETF could be one of the biggest ETF launches ever, leading to fierce competition among financial giants like BlackRock, Fidelity, Invesco, as well as specialized firms such as Grayscale, VanEck, Bitwise, and WisdomTree. Flows and volumes are crucial for marketing an ETF, as they indicate success and interest, encouraging other traders and investors to follow suit.
In light of this, analysts suggest that Ark Invest may sell its current positions in GBTC and transfer those assets to ARKB. The discount at which GBTC shares trade has decreased to a two-year low, with executives from Grayscale indicating that this discount would disappear if it converts to an ETF. ARKW currently holds a significant number of GBTC shares.
Ark Invest’s US ETFs manage around $13 billion in assets, compared to BlackRock’s $2.4 trillion under its iShares brand. Industry experts believe that BlackRock’s institutional relationships could help its bitcoin trust become a leading asset quickly. If GBTC is allowed to convert into an ETF alongside other firms launching bitcoin ETFs, it will have an advantage. Grayscale executives have expressed confidence in gaining regulatory approval to convert the trust into an ETF.
The marketing focus is crucial, especially with the potential for multiple bitcoin ETFs to launch on the same day. Several fund issuers have filed for spot bitcoin ETFs, with Switzerland-based Pando Asset recently joining the race. Amendments to applications are being made as firms continue to engage with SEC officials.
Overall, the approval of spot bitcoin ETFs could have a significant impact on the cryptocurrency market, with various firms vying for assets and market share. The decision by US regulators will be closely watched by industry participants and investors alike.