Bitcoin ETF Applications in Final Stages
According to public memos and industry executives, the launch of Bitcoin spot exchange-traded funds (ETFs) is nearing completion. The US Securities and Exchange Commission (SEC) currently has 13 applications awaiting approval, including those from BlackRock and ARK Invest. These applications are expected to be approved sometime in 2024.
New information reveals that the SEC has been engaging with executives from BlackRock and other firms to discuss technical details related to custody arrangements, investor disclosures, and share creation and redemption methods. These discussions have been ongoing since September and may explain the recent surge in Bitcoin’s price.
Bitcoin ETF Applications Moving Quickly
The meetings held between the SEC, lawyers, and exchanges where applicants plan to list their ETFs have been focused on various aspects of the applications. For example, the meeting regarding BlackRock’s ETF addressed the investment firm’s redemption mechanism.
Reports suggest that these discussions extend beyond the SEC’s trading and markets and corporate finance divisions to involve members of chairman Gary Gensler’s office. Furthermore, there has been an increase in frequency in requests from the SEC, with applicants submitting revised filings more regularly.
Cathie Wood Welcomes New ETFs
Cathie Wood’s ARK Invest, in partnership with 21Shares, has an ETF application that is first in line for approval on January 11, 2024. If this application is approved, it is expected that the SEC will also approve 12 other applications. Multiple approvals would provide investors with more options.
In addition to the Bitcoin ETF application, ARK has filed for at least five other crypto-related ETFs. One of these applications includes a fund that tracks Ethereum’s price directly.
SEC Commissioner Remains Silent on Application Reviews
While there is anticipation surrounding the approval of these crypto funds, the SEC has not made any commitments. In a recent interview, SEC Commissioner Hester Peirce chose not to comment on the status of application reviews. However, she acknowledged that there are better ways to regulate crypto than solely relying on enforcement measures.
Hot Take: The Future of Bitcoin ETFs
The progress and engagement between the SEC and various firms indicate that Bitcoin ETFs may soon become a reality. With multiple applications awaiting approval and industry players expecting positive outcomes, the launch of these ETFs could greatly impact the cryptocurrency market. If approved, Bitcoin ETFs would provide investors with easier access to Bitcoin as an investment asset. This could lead to increased adoption and further mainstream acceptance of cryptocurrencies.
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