US SEC Increases Communication with Bitcoin ETF Applicants
The US Securities and Exchange Commission (SEC) has taken a proactive approach in its communication with applicants for spot Bitcoin exchange-traded funds (ETFs). This is a significant departure from the SEC’s usual silence on the matter. The move follows fake news about BlackRock’s Bitcoin ETF approval, which has increased the speculation surrounding potential SEC acceptance.
Major Players Respond to SEC Feedback
Ark Invest and 21 Shares were the first to revise their submission in response to the SEC’s feedback. Other key players, including Fidelity, have also made similar adjustments to their applications. This development has been welcomed by industry experts and analysts, who see it as a positive sign of progress towards approval.
Pivotal Components of Fidelity’s Application
Fidelity’s renewed application for a spot Bitcoin ETF provides insights into several important aspects of their proposal. These include custody arrangements, procedures for hard forks, valuation and pricing methods adhering to accounting principles, risk disclosures related to regulation and energy consumption, and potential risks associated with illicit transactions.
Observations on Amendments and Future Requests
Legal experts have observed that the recent amendments made by applicants focus on specific areas such as custodial arrangements, hard forks, valuation sources, regulatory uncertainties, energy-intensive mining, and illicit transaction implications. They predict that the next round of amendments will reveal what the SEC is specifically focusing on for approval.
Momentum Points to January Launch
The momentum surrounding spot Bitcoin ETFs suggests that a launch in January is highly likely. Experts believe that if Ark Invest’s ETF is not approved by this date, the SEC will need to provide a new rationale. However, given the recent engagement between the SEC and issuers, it is unlikely that a new rationale will be needed.
Anticipation for the SEC’s Next Move
The Bitcoin and investment community eagerly awaits the SEC’s next move on spot Bitcoin ETFs. The SEC’s proactive stance has given hope to those anticipating a favorable verdict. The price of Bitcoin is currently at $28,683, facing resistance at the $29,000 mark during Asian trading hours.
Hot Take: Positive Signs for Spot Bitcoin ETF Approval
The increased communication between the SEC and Bitcoin ETF applicants indicates positive progress towards potential approval. Major players in the industry have responded by revising their applications based on the SEC’s feedback. The focus of these amendments provides insight into the areas of concern for regulators. With a January launch on the horizon, it seems likely that the SEC will accelerate the approval process for multiple ETFs simultaneously. The anticipation among the Bitcoin and investment community is high as they eagerly await the SEC’s decision.
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