Spot Bitcoin ETF Applications in Advanced Stages
The United States Securities and Exchange Commission (SEC) is moving forward with discussions regarding the launch of spot Bitcoin exchange-traded funds (ETFs), according to sources. The SEC has been asking detailed technical questions to potential issuers, indicating that approval may be imminent.
13 Asset Management Firms Apply for Spot Bitcoin ETFs
Between June and December 2023, 13 asset management firms, including BlackRock, Ark Invest, and Fidelity Digital, have filed applications with the SEC to launch spot Bitcoin ETFs. Grayscale also joined the race after a court ordered the SEC to review its application to convert Grayscale Bitcoin Trust into a spot Bitcoin ETF.
SEC Requests Detailed Information
The SEC has previously rejected spot Bitcoin ETF applications due to concerns about market manipulation. However, it has now started asking for details usually sought at the end of an application process, such as creation and redemption mechanisms, custody arrangements, and investor risk disclosures.
Increased Engagement with Asset Managers
Meetings between the SEC and asset managers have progressed from involving staff members to employees in Chair Gary Gensler’s office. The frequency of information requests from the regulator has also intensified.
Uncertain Outcome, but Optimism Persists
The crypto community is eagerly awaiting the SEC’s decision on Ark Invest’s filing, set for January 10, 2024. While there are no guarantees, sources remain optimistic that the advanced nature of discussions may lead to the approval of all spot Bitcoin ETF applications by next month.
Hot Take: Spot Bitcoin ETFs Moving Closer to Reality in the US
The US SEC’s progress in discussing spot Bitcoin ETFs with potential issuers signals a significant step towards their approval. With 13 asset management firms vying to launch these ETFs, including major players like BlackRock and Fidelity Digital, the industry is poised for a breakthrough. The SEC’s increased engagement and detailed information requests indicate a willingness to address concerns about market manipulation. While the outcome remains uncertain, the advanced nature of discussions raises hopes for the approval of all applications in the near future. If successful, spot Bitcoin ETFs could open up new opportunities for investors and further legitimize cryptocurrency in the mainstream financial landscape.
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