Meeting With Spot Bitcoin ETF Issuers
The U.S. Securities and Exchange Commission (SEC) recently held meetings with four different issuers concerning their spot bitcoin exchange-traded fund (ETF) applications.
Bloomberg analyst James Seyffart revealed that Blackrock, Fidelity Investments, Franklin Templeton, and Grayscale Investments met with the SEC to discuss their proposals. According to the SEC’s website, Grayscale and Franklin Templeton met on Dec. 8, Fidelity Investments on Dec. 7, and Blackrock on Dec. 11.
Bloomberg ETF analyst Eric Balchunas commented, “The SEC is busier than Santa’s elves…everyone is waiting to see if they can convince SEC to allow in-kind creations in the first run of approvals.”
Satisfying SEC’s Concerns
The Division of Trading & Markets and the Division of Corporate Finance of the SEC were present at each meeting with the spot bitcoin ETF issuers. These two divisions will determine the approval or denial of the ETF applications.
Blackrock and other issuers are advocating for the in-kind creation model for their spot bitcoin ETFs, while the SEC prefers the cash model. In response, Blackrock has proposed a revised in-kind model and addressed the SEC’s concerns about bitcoin potentially being classified as a security.
Chance of Approval and Predictions
Bloomberg predicts a 90% chance of the SEC approving spot bitcoin ETFs by Jan. 10. Currently, the SEC is considering 13 applications from various issuers.
Anthony Scaramucci, founder of Skybridge Capital, expects a significant capital inflow from Wall Street into BTC after the spot bitcoin ETFs are approved. Meanwhile, Galaxy Digital CEO Mike Novogratz anticipates a considerable increase in the cryptocurrency’s price.
Hot Take: SEC in Talks with Spot Bitcoin ETF Issuers
The U.S. SEC has been actively discussing spot bitcoin exchange-traded fund (ETF) applications with various issuers, including Blackrock, Fidelity Investments, Franklin Templeton, and Grayscale Investments. While the companies are advocating for the in-kind creation model, the SEC prefers the cash model. A decision on these ETF applications is eagerly awaited, with Bloomberg giving a 90% chance of their approval. If approved, it is expected that Wall Street will pour substantial capital into BTC, leading to a significant increase in its price.
By
By
By
