The U.S. Securities and Exchange Commission (SEC) is on the verge of potentially approving several spot Bitcoin ETFs, as evidenced by the flurry of recent activities by major financial institutions. As Bloomberg’s James Seyffart highlights, the market eagerly anticipates amendments to 19b-4 filings, which is crucial for approval. These amendments are expected to address issues related to cash creation and redemption mechanisms, a vital component in the ETF approval journey.
Eleanor Terrett of Fox Business shares Seyffart’s view in light of the expected submission of amended 19b-4 filings in a closely watched development. The amendments and comments on S-1s are set to shape the potential launch dates of these ETFs. Terrett posted to X,
“Expecting some amended 19b-4 filings today as well as some eleventh hour phone calls concerning comments on S-1s and possible launch dates. The timeline for approvals still looking like next week but will all depend on how fast the SEC can read through comments and amendments made today.”
As Terrett notes, the process is now primarily about dotting the i’s and crossing the t’s.
We are waiting on decisions for applications from major players made up of Grayscale, Fidelity, Valkyrie, iShares BlackRock, Ark, VanEck, Franklin Templeton, Invesco Galaxy, WisdomTree, Global X, Hashdex, and 7RCC awaiting the SEC’s decision.
As of our last report, only VanEck, Grayscale, and Fidelity had filed Form 8-A. Since, Valkyrie and Ark filed late on Jan. 4, also signaling their readiness and progress toward launching a spot Bitcoin ETF. The filing of Form 8-A, while a critical step, does not guarantee approval but indicates the issuer’s preparedness to comply with SEC regulations.
Other recent SEC updates include Hashdex’s recent receipt of an EFFECT form for its Trust conversion, indicating the SEC’s approval for the reorganization of Hashdex Bitcoin Futures ETF into another fund on Jan. 2. However, it’s crucial to understand that this approval is separate from the approval of a spot Bitcoin ETF which is included in a related, but separate, filing.
The anticipation of the SEC’s decision is palpable, as evidenced by yesterday’s recovery in Bitcoin’s price. It saw a 6.89% increase from its Jan. 3 low, buoyed by market optimism, and has traded tumultuously between $42,600 and $44,200 throughout Jan. 5, which notably is the deadline for comments on several of the ETF applications. This increase reflects the high stakes and keen interest in approving a spot Bitcoin ETF, which would allow ETFs to directly gain exposure to Bitcoin, unlike Bitcoin futures.
Grayscale, Fidelity, Ark, VanEck, and Valkyrie are ‘on paper’ in the lead in terms of filing the required documents to launch a spot Bitcoin ETF. However, the current market consensus is that if the SEC approves the concept of a spot Bitcoin ETF, in principle, many, if not all, of the filings will be approved. The outcomes of these deliberations are eagerly awaited, with potential implications for the broader crypto market.
The crypto market is on the edge of its seat as the SEC deliberates on approving spot Bitcoin ETFs.