The investment industry is about to witness a historic milestone with the possible approval of the first Bitcoin Exchange-Traded Funds (ETFs) in the United States. The progress comes after a series of changes to regulatory documents, indicating growing optimism among the market’s key players.
Behind the scenes, big names like BlackRock, Grayscale and Fidelity, along with US exchanges, published the final filings of their ETF applications, bringing the documents into compliance with US Securities and Exchange Commission (SEC) guidelines.
The changes to the 19b-4 filings filed on behalf of these financial giants reflect feedback received from the SEC. More than a dozen applicants eager to launch their first ETFs are waiting for the green light, with the expectation that multiple issuers will be approved at the same time.
Bitcoin ETFs could be approved on January 10
While updating documents does not guarantee approval, the general attitude is one of positive trust. The deadline for SEC action on at least one of the applications, specifically Ark 21 shares, is January 10, signaling a possible mass approval of applications pending so far.
Grayscale, one of the candidates in line, shows an unwavering commitment to the process. Jenn Rosenthal, the company’s spokesperson, emphasized the importance of this move to transform its Bitcoin fund, GBTC, into a spot Bitcoin ETF.
She reiterated Grayscale’s commitment to working with the SEC and willingness to operate GBTC as an ETF once regulatory approvals are granted.
At the same time, Bloomberg also reported that the SEC is prepared to vote on record-exchange rules next week, a crucial step toward the launch of ETFs.
In the same context, investment management companies and exchanges have been involved in discussions with the SEC to refine the registrations of spot Bitcoin ETFs.
According to executives and representatives familiar with the matter, these discussions have focused on S-1 prospectus documents, a key requirement for an ETF’s approval.
The SEC has proposed smaller changes, such as disclosing fees or identities of market makers for ETFs, with issuers set to move forward with final approval of S-1 filings by the middle of next week.
In a strategic move, regulators worked with exchanges to complete the 19b-4 filings, which detail the rule changes needed to launch spot Bitcoin ETFs. With year-end review deadlines met, issuers are expected to be able to launch their products by January 10.
Historic moment
The SEC’s historic resistance to approving spot Bitcoin ETFs, citing concerns about vulnerability to market manipulation, appears to be waning.
Last year, fourteen companies, including heavyweights such as BlackRock and Fidelity, filed applications for such ETFs, marking a period of anticipation and hope in the financial sector.
Intriguingly, the SEC has asked issuers to prepare for a request to accelerate the effective date of ETFs, an atypical process that reflects the urgency and importance of this development.
While the SEC commissioners’ vote on the changes to Rules 19b-4 is expected next week, the investment landscape is on the cusp of a significant evolution.
The upcoming approval of these spot Bitcoin ETFs in the US symbolizes a milestone for the cryptocurrency market and a recognition of Bitcoin’s growing relevance and maturity on the global financial stage.
Bitcoin ETFs could open new avenues for institutional and retail investors, expanding access to one of the most dynamic and talked about assets of modern times.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
