BlackRock, Ark, and Other Issuers File Amended Forms for Bitcoin ETFs
BlackRock Inc, Ark, and several other prospective issuers of exchange-traded funds investing directly in Bitcoin in the US have filed amended forms for their applications with the Securities and Exchange Commission (SEC). Firms like Fidelity, Invesco, Galaxy Digital, and WisdomTree have also filed amended S-1 applications with the SEC. Speculations suggest that the regulator will announce decisions on these applications by January 10. After the amended filings, Bitcoin saw a 1.7% increase, reaching $45,026.
Requirements for Spot-Backed Bitcoin ETFs
Before a spot-backed Bitcoin ETF can start trading, two technical requirements must be fulfilled. First, the SEC must approve the 19b-4 filings made by exchanges to list the ETFs. Second, the regulator must approve the relevant S-1 forms submitted by the issuers as registration applications.
The SEC is expected to vote on the exchanges’ filings in the coming days. If both sets of required approvals are granted, the ETFs could begin trading as early as the next business day.
Impact of Bitcoin ETFs
Bitcoin supporters believe that ETFs backed by the cryptocurrency would be a significant milestone for digital assets. The approval of these ETFs could result in billions of dollars flowing into Bitcoin from retail and institutional investors. However, in the past, the SEC has been hesitant to allow such products due to concerns about investor protection and market manipulation.
Speculation has grown since August when the SEC lost a legal battle against Grayscale Investments that they might give in to the demand for Bitcoin ETFs. The anticipation of regulatory approval fueled a 160% jump in Bitcoin’s value last year, but it still hasn’t reached its record highs from November 2021.
Hot Take: The Potential Impact of a Bitcoin ETF Approval
“The market is still seriously underestimating the potential impact of a Bitcoin ETF approval,” said Michael Anderson, co-founder of crypto venture firm Framework Ventures. The approval of Bitcoin ETFs could open doors for significant investments and drive the cryptocurrency’s value even higher. It remains to be seen whether the SEC will finally give in to the demand and pave the way for this landmark development in the crypto world.
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