SEC Meets with Seven Bitcoin ETF Applicants as Deadline Approaches
Representatives from several companies seeking to launch exchange-traded funds (ETFs) linked to spot Bitcoin (BTC) have recently met with officials from the Securities and Exchange Commission (SEC). The SEC has instructed at least two applicants to submit final changes to their proposals by the end of next week. Participants in the meetings included representatives from BlackRock, Grayscale Investments, ARK Investments, and 21 Shares.
SEC Sets December 29 Deadline
The SEC has set a deadline of December 29 for the final updates to be made to the filings. Failure to meet this deadline will exclude applicants from the initial wave of potential spot Bitcoin ETF approvals in early January. Representatives from exchanges where the new products may be traded, such as Nasdaq and Cboe, as well as attorneys representing the applicants, were present at the meetings.
Growing Inclination to Approve Spot Bitcoin ETFs
Over the years, the SEC has rejected multiple applications for spot Bitcoin ETFs due to concerns about market manipulation. However, recent developments suggest a growing inclination among regulators to approve some of the proposed spot Bitcoin ETFs. A federal appeals court ruling in August found that the SEC had made an error in rejecting Grayscale’s proposal. The SEC could potentially accept ETF applications by early 2024.
Final Changes and Updates
Several issuers have made technical amendments to their ETF proposals in recent days. BlackRock and ARK updated their filings to accommodate cash redemptions as requested by regulators. Final updates will include detailed fee information and information about the initial capitalization of the new ETFs. The proposed fee for the joint ETF by ARK and 21 Shares is set at 0.80%. The capital provided during seeding is crucial for market makers to ensure the initial market for the new ETFs remains liquid.
Hot Take: SEC Nears Decision on Bitcoin ETF Approvals
The SEC’s meetings with Bitcoin ETF applicants indicate that a decision on spot Bitcoin ETF approvals is imminent. The discussions have revealed a growing willingness among regulators to approve these ETFs, potentially opening up new investment opportunities in the cryptocurrency market. With the December 29 deadline approaching, applicants are making final changes to their proposals, including fee information and initial capitalization details. If approved, these ETFs could provide investors with a regulated and accessible way to invest in Bitcoin. The crypto community eagerly awaits the SEC’s decision and its potential impact on the market.
By
By
By
By