Since 2021, the SEC has rejected multiple applications to issue spot bitcoin ETFs, arguing that the cryptocurrency market is vulnerable to manipulation.
In August, a federal court ruled that the SEC wrongly rejected Grayscale Investments' application to convert its Bitcoin Trust into a spot bitcoin ETF.
SEC chair Gary Gensler said last month that the SEC is evaluating as many as 10 spot bitcoin ETF proposals.
The average fee levied on U.S. ETFs currently hovers around 0.54%, but Ark's proposed fee of 0.80% is significantly lower than the 2% that Grayscale currently charges investors on its spot bitcoin trust.
If the SEC does approve some or all of the pending spot bitcoin ETF applications in early January, industry participants and analysts expect a fierce battle for market share to follow.
Persons:
Cathie Wood, 21Shares, Gary Gensler, Ark's, It's, Suzanne McGee, Elaine Hardcastle
Organizations:
ARK Investment Management, U.S . Securities, Exchange Commission, SEC, Thomson
Locations:
Swiss