Financial Advisers Skeptical About Bitcoin ETF Approval in 2024; Grayscale and VanEck Take Crucial Step Toward Spot Bitcoin ETF Approval; Marathon Digital Achieves Record-Breaking Bitcoin Mining Output in December
A recent survey conducted by ETF issuer Bitwise has revealed that only 39% of U.S.-based financial advisers believe a spot Bitcoin exchange-traded fund (ETF) will be approved in 2024. The survey included participants such as registered investment advisers (RIAs), financial planners, institutional investors, and wirehouse representatives. This contrasts with the optimism of some experts who anticipate ETF approval by January 10.
While only 39% of surveyed financial advisers expect approval in 2024, a significant 87% believe that a Bitcoin ETF will eventually be approved. Of those surveyed, 22% predicted approval in 2025, 24% anticipated approval after 2025, and 2% expected approval in 2023, a prediction that did not materialize. Only 12% responded with “never.”
Despite skepticism, the survey indicated that many advisers are eager for ETF approval, with some expressing the desire to purchase Bitcoin for themselves or clients for the first time. Among advisers who wished to buy Bitcoin, 88% indicated a preference to do so after the approval of a spot Bitcoin ETF in the United States.
ETF issuers have faced challenges in obtaining approval for spot Bitcoin ETFs from the U.S. Securities and Exchange Commission (SEC) for years. Grayscale’s successful appeal in August 2023, which forced the SEC to reconsider its rejection of a spot Bitcoin ETF proposal, has fueled optimism that ETF approval may be imminent. The SEC has a January 10 deadline to decide on the ARK 21 Shares spot Bitcoin ETF, with deadlines for other funds in March.
Grayscale and VanEck Take Crucial Step Toward Spot Bitcoin ETF Approval
Grayscale Investments and VanEck, two major players in the cryptocurrency sector, have made significant strides in their pursuit of a spot Bitcoin exchange-traded fund (ETF). Both companies recently submitted notices to the United States Securities and Exchange Commission (SEC) on January 4, formally declaring their intention to register shares for a spot Bitcoin ETF on leading stock exchanges.
In individual filings with the SEC, the VanEck Bitcoin Trust and Grayscale Bitcoin Trust utilized Form 8-A to officially register their shares as securities. This follows a similar registration filed by the Fidelity Wise Origin Bitcoin Fund on January 3.
Currently, several applications for spot Bitcoin investment vehicles are under consideration by the SEC, with industry insiders anticipating a decision in the coming week. There’s speculation that the SEC may approve multiple listings before the critical January 10 deadline, particularly for a spot Bitcoin ETF proposal from ARK Invest and 21Shares.
It’s crucial to note that while the Form 8-A filings signify progress in the ETF registration process, they do not guarantee SEC approval. Analyst James Seyffart from Bloomberg suggests that individuals should be on the lookout for approvals accompanied by a 19B-4 Form and a completed S-1 document.
Executives from Grayscale, including Chief Legal Officer Craig Salm and CEO Michael Sonnenshein, have posted enigmatic messages on X (formerly Twitter), adding to the anticipation surrounding a potential SEC decision.
Notably, the SEC has yet to approve a spot Bitcoin exchange-traded product for listing and trading on U.S.-based exchanges. Various asset management firms, such as BlackRock, Bitwise, Fidelity, Valkyrie, WisdomTree, and Invesco Galaxy, have pending applications for spot Bitcoin and Ether ETFs with the SEC.
While U.S. crypto traders have had access to investment products linked to BTC futures since 2021 following the approval of an offering from ProShares by the SEC, Canada took the lead in approving a spot Bitcoin ETF from Purpose Investments in 2021.
Marathon Digital Achieves Record-Breaking Bitcoin Mining Output in December
Florida-based Bitcoin miner Marathon Digital Holdings has set a new industry benchmark by mining an unprecedented 1,853 Bitcoin in December. This achievement represents a remarkable 56% increase from November and an astounding 290% surge from the same period in the previous year.
In a press release on January 4, Marathon Digital claimed this to be the highest monthly total ever recorded by a public Bitcoin mining company, surpassing the previous record held by Core Scientific, which mined 1,527 BTC in January 2023.
This milestone comes shortly after Marathon Digital’s announcement on December 19 regarding its plans to acquire two mining centers for $179 million. The new facilities are expected to add an additional 390 megawatts of mining capacity to the company’s existing 584-megawatt output.
“We continue to target 30% growth in energized hash rate in 2024, and with the recently announced acquisition of the two sites from Generate Capital, we expect to reach 50 exahashes in the next 18 to 24 months,” stated Marathon Digital CEO Fred Thiel.
On December 28, Marathon briefly became the most-traded public company in the mid and large-cap segments on the U.S. stock market. The company experienced an impressive $3.3 billion daily trading volume, outperforming notable market giants like Tesla, Apple, and Amazon on that particular day.
This record-breaking mining performance aligns with the broader trend in the Bitcoin mining industry, where companies are actively expanding their operations. This strategic move is driven by the anticipation of the potential approval of a spot Bitcoin exchange-traded fund (ETF) and the upcoming Bitcoin halving scheduled for April.
In a similar vein, competitor Riot Blockchain made headlines on December 5 by acquiring an additional $291 million worth of Bitcoin mining rigs, marking the most substantial increase in the hash rate in the company’s history.