Prospective Bitcoin ETF Issuers Ready to Trade Next Week
According to sources involved in the process, prospective spot bitcoin ETF issuers are prepared to start trading as early as next week if the Securities and Exchange Commission (SEC) approves the necessary filings. However, before trading can begin, issuers and exchanges need to finalize some filings.
Final Filings Being Prepared
Grayscale Investments is working on filing an amended form 19b-4 over the next three business days. This is necessary because previous paperwork needs to be refreshed. The spot bitcoin ETF issuers also need to file final S-1 forms, which lay out fees and name authorized participants while removing any bracketed items.
Approval Process for Spot Bitcoin ETFs
In order for spot bitcoin ETFs to go live, the SEC must approve the outstanding 19b-4 forms for each fund. The S-1 forms must also become effective. The approvals may not come simultaneously. Once both approvals are granted, trading can commence.
Trading Could Begin Next Week
One source predicts that the 19b-4 approvals will likely come mid-to-late next week, with trading potentially starting on Thursday or Friday. Bloomberg Intelligence ETF analyst Eric Balchunas noted that final comments from the SEC are being given, and then issuers will submit final 19b-4s and S-1s. However, no official approval has been confirmed yet.
Progress Toward a Spot Bitcoin ETF
In recent days, multiple prospective spot bitcoin ETF issuers have submitted Form 8-As as another step forward in the process. This registration allows issuers to trade on an exchange once their product is approved. Over the past few months, issuers have been working closely with the SEC to address any remaining concerns.
Uncertainty Remains
There is still some uncertainty regarding the launch of a spot bitcoin ETF. The SEC has the power to further delay the launch and can request issuers to withdraw and refile their applications. Professor James Angel from Georgetown University suggests that while deadlines exist, the SEC can coerce registrants to agree to a delay. Issuers could potentially go to court, but that process would take months.
Hot Take: Prospective Bitcoin ETF Issuers Prepare for Trading Next Week
If the necessary filings are approved by the SEC, prospective spot bitcoin ETF issuers are ready to start trading as early as next week. Grayscale Investments is working on finalizing an amended form 19b-4, while issuers also need to file final S-1 forms. The SEC must approve both forms for each fund before trading can commence. One source predicts that approvals may come mid-to-late next week, with trading potentially starting on Thursday or Friday. However, there is still uncertainty surrounding the launch of a spot bitcoin ETF, as the SEC has the power to further delay it.
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