- Bitcoin Spot ETF issuers are competing to offer lower fees on the securities product while awaiting the SEC’s approval.
- Grayscale stands out with the highest fee at 1.5%, while BlackRock, Ark Invest, VanEck or Bitwise offer more competitive rates.
- BTC price eyes rally to the psychologically important level of $50,000 as anticipation surrounding the January 10 deadline builds.
Bitcoin Spot ETF filers are engaged in a fee war, offering competitive rates to attract capital. Bitwise Invest offers the lowest fee at 0.24%, while GrayScale is set to charge the highest fee at 1.5%.
While market participants anticipate the US Securities and Exchange Commission (SEC) to approve one or many spot Bitcoin ETF applications by the January 10 deadline, the founder of the Chamber of Digital Commerce said that the regulator is likely to delay the decision on the securities product.
Also read: Bitcoin Spot ETF could see SEC greenlight, Grayscale Investments files amended S-3 sets 1.5% fee
Daily digest market movers: SEC decision on Spot Bitcoin ETF anticipated on Tuesday or Wednesday
- Bloomberg ETF analyst James Seyyfart said that the SEC shared its comments on the amended S-1 filings by issuers.
- The amended filings showed a competitive fee pricing war among issuers, with Bitwise Invest offering the lowest (0.24%) and Grayscale Investments the highest fee (1.5%).
- While the SEC expects more amendments on Tuesday, Seyffart does not necessarily consider it a sign of delay from the US financial regulator. However, Perianne Boring, the founder and CEO of the Chamber of Digital Commerce, considers it a sign of delay in the Bitcoin Spot ETF decision by the SEC, according to her recent tweet on X.
SPOT BITCOIN ETF UPDATE: The SEC just issued additional comments on pending applicant’s S-1s. This is a delay signal. #BitcoinETF #bitcoin
— Perianne (@PerianneDC) January 9, 2024
- Eleanor Terret, Journalist at Fox Business, said that she spoke to issuers who received additional comments from the regulator on their S-1 filings. The issuers said the SEC has not conveyed a change of plans.
Just spoke with a couple of people who received additional comments. They say they’re not worried and the @SECGov hasn’t conveyed a change of plans.
My sense is that they’re fairly confident this is just part of the process to get everything in before January 10th. https://t.co/B9PvuHo6yX
— Eleanor Terrett (@EleanorTerrett) January 9, 2024
- Terret shared a list of issuers that are ready to launch their Spot Bitcoin ETF as soon as they get an approval: Grayscale, Ark/21Shares, Blackrock, BitWise, VanEck, WisdomTree, Invesco, Fidelity, Valkyrie and Franklin.
- The SEC’s Chairman Gary Gensler recently informed investors of the risks involved in investments in crypto assets in a tweet thread on X:
A thread
Some things to keep in mind if you’re considering investing in crypto assets:
— Gary Gensler (@GaryGensler) January 8, 2024
Technical Analysis: Bitcoin price could rally to $50,000
Bitcoin price peaked at $47,200 on Monday amidst rising anticipation of the SEC’s decision on the Spot Bitcoin ETFs. Market participants expect that an approval is imminent, and while most experts believe that the approval is already priced in, BTC price climbed nearly 6% in the past week as the deadline of January 10 draws close.
Bitcoin price has sustained above $42,000 in January, rallying towards the psychologically important level of $50,000. The last time that BTC price was above this level was in December 2021.
Bitcoin will likely face resistance at $48,600, the 61.8% Fibonacci retracement level of the decline from November 2021 to 2022. Once BTC price tackles this resistance, it could rally to the upper boundary of the fair value gap at $50,583, as seen in the chart below.
BTC/USDT 1-day chart
However, a daily candlestick close below the 50% Fibonacci retracement level at $42,349 could invalidate the bullish thesis for the asset.
Open Interest, funding rate FAQs
Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.
Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.
Robert Johnson is a UK-based business writer specializing in finance and entrepreneurship. With an eye for market trends and a keen interest in the corporate world, he offers readers valuable insights into business developments.
