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El Salvador's Bitcoin Revolution: Bukele's Re-Election

El Salvador’s Political Landscape: Bukele’s Re-Election and Bitcoin Integration The recent re-election of President Nayib Bukele of El Salvador marks a pivotal moment in the nation’s political and economic journey. With an overwhelming 85% of the vote according to exit polls, Bukele’s victory not only underscores his popularity but also reflects a broader endorsement of his controversial policies—particularly his bold embrace of Bitcoin as legal tender. This pioneering approach has positioned El Salvador at the forefront of cryptocurrency adoption on a global scale, despite facing international scrutiny. The Bukele Administration: A Brief Overview Since assuming office in 2019, Bukele has made significant strides in several key areas: Gang Violence Reduction: His administration has implemented strategies aimed at curbing the rampant gang violence that has plagued the country for years. Bitcoin Legalization: In September 2021, El Salvador made history by becoming the first

Unveiling the Potential Impact of SEC Approval on Spot Bitcoin ETF Applications

Today marks the pivotal day when the U.S. Securities and Exchange Commission (SEC) is set to make a decision on at least one of the 11 pending spot Bitcoin ETF applications within its own deadline. Bloomberg Intelligence analyst Eric Balchunas anticipates formal approvals to potentially occur around 4-6pm today, coinciding with the upcoming Derby on Thursday. If funds are indeed approved today, they could become available as early as market opening on Thursday, January 11. This event has been aptly named the "Cointucky Derby" by ETF analysts, highlighting the industry's decade-long anticipation for a spot Bitcoin ETF approval in the U.S. while such products have been tradable in other parts of the world. Noteworthy contenders in the race include BlackRock, Fidelity, WisdomTree, and Grayscale, all of whom have been actively amending their S-1 registrations this week to address SEC feedback.

Amendments and Fee Adjustments:

  • BlackRock and ARK Invest have recently revised their fees for their funds, with BlackRock now charging a 0.25% fee on its fund and an introductory fee of 0.12% on the first $5 billion of assets under management for a year.
  • ARK 21Shares has adjusted its fee to 0.21% and has committed to waiving ETF fees until the fund amasses $1 billion in assets or for the initial six months, whichever milestone is reached first.

SEC Decision and Market Dynamics:

  • SEC regulations permit the agency to delay decisions for up to 240 days post-application receipt. However, for the ARK 21Shares Bitcoin ETF, the SEC is now compelled to either approve or deny the application, having exhausted its delay period.
  • Notably, the market experienced a significant fake-out movement yesterday, underscoring the volatility and anticipation surrounding the pending SEC decision.

As the industry eagerly awaits the SEC's verdict on the spot Bitcoin ETF applications, market participants are poised for potential shifts in market dynamics and investment opportunities that could arise from the approval of these long-awaited financial products.

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