SEC’s Preparation for Approving ETF Filings
The US Securities and Exchange Commission (SEC) recently held a joint conference call with ETF filers, leading analysts to speculate whether the agency is preparing to approve some issuers’ filings in the near future. The Commission has a deadline approaching on January 10, 2024, and it is widely anticipated that a decision will be made before then.
SEC’s Preference for Cash Only Model
Reports suggest that the SEC has instructed ETF seekers to operate on a cash-only redemption model, contrary to what the current filings show. Out of the 14 ETF filers, seven companies have already converted to the cash-only model. Bitwise was the first to do so, while Grayscale, VanEck, WisdomTree, and Franklin Templeton currently offer both in-kind and cash creation types. It remains uncertain whether these companies will opt for cash-only conversion.
Predictions for Bitcoin ETF Approvals
Bloomberg analyst James Seyffart believes that some issuers may not meet the January 10, 2024 deadline, while others may receive SEC approval. However, he considers it unlikely that Bitcoin ETF approvals will occur within 2023.
“If anything this *may* bring approvals into 2023? But base case I am expecting approvals (between) January 8-10.”
Blackrock and Grayscale’s Potential Approval
Fox Business senior correspondent Charles Gasparino recently stated that the SEC is on track to grant ETF approvals by January 10, 2024. In the meantime, some ETF seekers have been meeting with SEC officials to discuss their filings. Blackrock and Grayscale have had approximately 4 to 5 meetings each with the Commission. This raises the possibility that both Blackrock and Grayscale could be among the first to receive ETF approval, pending Grayscale’s transition to a cash-only redemption model.
Hot Take: SEC Nearing Decision on Bitcoin ETF Approvals
The US Securities and Exchange Commission (SEC) appears to be making progress towards approving Bitcoin ETF filings. With a deadline approaching in January 2024, analysts predict that some issuers may receive approval while others may not. The SEC has expressed a preference for the cash-only redemption model, leading several companies to convert their filings accordingly. Speculation surrounds whether Blackrock and Grayscale will be among the first to obtain ETF approval, given their frequent meetings with the Commission. While the exact timing of approvals remains uncertain, many anticipate a decision from the SEC in the coming months.
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