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Bitcoin Spot ETF: Bitwise Closes Ranks with $200 Million Initial Fund

Competition among Spot Bitcoin ETF issuers is intensifying as the period for possible approval of these funds approaches. Asset manager Bitwise is the issuer currently making waves as it could potentially overtake the world’s largest asset manager, BlackRock, in terms of seed funding for its respective ETFs.

Bitwise Bitcoin ETF Could Receive $200 Million Seed Funding

Bitwise’s latest amendment to its S-1 filing with the Securities and Exchange Commission (SEC) shows that the asset manager has secured investor interest for its ETF to receive $200 million at launch. Bloomberg analyst Eric Balchunas highlighted its importance, saying it “exceeds” BlackRock’s initial fund of $10 million.

The analyst noted that Bitwise actually seeding its ETF with such an amount could be a “huge help” in the early days of the run. It is believed that the SEC will likely approve the pending ETF applications simultaneously. As such, Bitwise’s ability to create shares worth $200 million could give the asset manager an edge in terms of meeting client demands.

Bitwise had already demonstrated its intention to lead from the start following the launch of its commercial Bitcoin ETF. This move could help the asset manager gain a lot of interest in their Bitcoin ETF even before launch. This way, the public sees it as the first option at the time of launch.

Notably, Bitwise did not mention who the authorized participant (AP) of its ETF would be. The AP would act as an intermediary between the investor and the ETF issuer, as they are responsible for creating and redeeming ETF shares. While Bitwise has not named its AP, other issuers such as BlackRock have included it in their latest S-1 filing with the SEC.

BTC ETF Issuers Show Their Hands in Latest Wave of Registrations

Bitcoin ETF spot issuers have made some notable additions in their most recent and final amendment to their S-1 filings. These inclusions also give an idea of the strategy these issuers may seek to adopt to attract investors to their funds. In the case of Fidelity, the asset manager will seek to attract investors with its relatively low fees.

Balchunas noted that Fidelity’s “sponsorship fee” of 0.39% turns out to be the lowest so far among other issuers that have disclosed theirs. Interestingly, Invesco is adopting a more attractive strategy, as it revealed in its latest amendment that it will waive fees for the first six months and the first $5 billion in assets.

The Bloomberg analyst mentioned that fee wars will continue to exist in the Bitcoin spot ETF arena as issuers look to outdo each other.

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Institutions Are Moving Into Cryptocurrencies: Retail Investors Beware

As the queue for a bitcoin spot ETF grows longer, institutions are acutely aware that the time to finally get into bitcoin is drawing near. Are retail investors equally aware?

Will cryptocurrencies fall sharply?

A casual glance at cryptocurrency on Twitter or any other social media channel is enough to “confirm” that bitcoin and the cryptocurrency market are going to drop sharply and hit lows again or even go beyond them.

Rottweiler Gensler and his Securities and Exchange Commission (SEC) may have had some disappointments in their attacks on some of the biggest players in the crypto space, but the regulatory web is catching up and surely crypto can be stifled. enough to stop them in their tracks. …accompany and allow the legacy monetary system to continue its dominance without restriction.

Institutions are not stupid

However, Wall Street may be crooked, but money goes to money and institutions have finally realized that getting into Bitcoin is a no-brainer.

Of course, the likes of Blackrock and its other giants could find some way to try to manipulate bitcoin, just as gold and silver banks have done decade after decade.

Relatively small positions in the futures markets are leveraged to go short and force the price down, allowing banks to buy at lower prices and then rinse and repeat, year after year after year.

However, Bitcoin is a different animal, and manipulators should be careful, as their paper positions, with no ties to the underlying asset and cash-settled, are likely to be wiped out as Bitcoin is steadily bought.

The stars are aligning

Wall Street shenanigans or not, these institutions are still coming, and the SEC being forced to award the cash ETFs could come at the same time the US presidential race gets serious—and just right. when Bitcoin approaches its halving.

A monetary policy easing from the Fed and a bitcoin supply shock are potential factors in a bitcoin price explosion that will take the number one cryptocurrency to the top of its next cycle, perhaps in 2025.

Retail investors may be forced to pull out

No doubt retail is suffering badly as consumer prices remain unbearably high, house prices are falling, mortgages need to be refinanced (in the UK) at what could be 2-3 times current rates and jobs are declining as fast as AI. it is improving.

Bitcoin was created as an alternative asset to fiat currencies, which are controlled by central banks in our indebted monetary system. The mainstream media wants us to believe that all cryptocurrencies will eventually go to zero, and many of them could, but the reality is that “all” fiat currencies will go to zero and there is absolutely no question that this has to happen. mathematically.

On the other hand, Bitcoin is probably totally unstoppable right now. Holding $BTC and averaging is perhaps a good way to go. Time horizons should also be long, as widespread adoption may still take a few years.