According to Blockworks, amendments to bitcoin ETF proposals by various fund issuers suggest that an approval may be on the horizon. Ophelia Snyder, president of bitcoin ETF hopeful 21Shares, stated that engagement with regulators feels different this time. The US Securities and Exchange Commission (SEC) has never allowed a spot bitcoin ETF to come to market, despite numerous attempts by fund issuers over the past decade. 21Shares and Ark Invest have filed for a spot bitcoin ETF multiple times, with the SEC denying their proposals in March 2022 and January 2023, before the firms re-filed in April.
Snyder noted that the SEC's interaction with fund groups looking to launch spot bitcoin ETFs has historically remained consistent, but there seems to be a shift now. She said that people are providing amendments to documents and offering more information on what these products will look like in the market, which is a positive sign. 21Shares and Ark Invest amended their bitcoin ETF proposal for a third time on Monday, while other issuers such as BlackRock, Fidelity, and Invesco have updated similar applications in recent weeks.
The amendment includes a "sponsor fee" of 0.80%, giving an idea of the potential cost for investors. Snyder mentioned that they expected the fees to be higher than traditional ETFs due to the additional infrastructure and expertise required. The futures-based ProShares Bitcoin Strategy ETF (BITO), currently the largest crypto ETF in the US, has an expense ratio of 95 basis points and has seen net inflows of $207 million in November. 21Shares and Ark Invest launched their own suite of crypto futures ETFs last week. Snyder believes that spot bitcoin funds will attract more interest than futures ETFs in the medium term, as better access and developments in the underlying technology coincide for a potentially changed market outlook.
