In recent days, four prominent Bitcoin (BTC) exchange-traded fund (ETF) issuers have held meetings with the Securities and Exchange Commission (SEC).
Bloomberg ETF analyst James Seyffart reports that these issuers have been actively engaging in discussions with the SEC regarding their Bitcoin-related filings, fostering increased optimism for the approval of spot Bitcoin ETFs in the near future.
BlackRock, notably, has stood out by meeting with federal regulators for the third time in as many weeks on December 12. In addition to BlackRock, Grayscale, Franklin, and Fidelity also had meetings with the SEC last week. These engagements underscore the growing interest and concerted efforts within the industry toward obtaining approval for Bitcoin ETF applications.
BlackRock has recently modified its spot Bitcoin ETF application to enhance accessibility for large banks, signaling a strategic move to broaden participation.
The revised application introduces new shares within the fund that can be acquired using cash, expanding the range of options beyond the exclusive use of cryptocurrencies.
The Securities and Exchange Commission (SEC) is anticipated to make a decision on BlackRock’s application by January 15, with the final deadline set for March 15. Notably, during the recent meetings, both the Division of Trading and Markets and the Division of Corporate Finance were present. These divisions play a pivotal role in the approval or denial of the 19b-4’s and S-1’s, making their involvement crucial in the evaluation process.
BlackRock’s Repeated Meetings with SEC Spark Optimism
In a recent post on X (formerly Twitter), ETF expert Eric Balchunas drew attention to BlackRock’s frequent meetings with the Securities and Exchange Commission (SEC).
Balchunas noted the significance of Rachel Aquirre, the head of all US iShares, being present in the recent meeting. He raised a question, expressing curiosity about why market makers are not invited to these meetings, suggesting that their input could provide valuable perspectives in the discussions related to ETFs. This observation underlines the interest and scrutiny surrounding BlackRock’s engagement with regulatory authorities and hints at the potential impact of such meetings on the approval process for their spot Bitcoin ETF application.
Nate Geraci, President of ETF Store, shared insights from his discussion with Valkyrie’s Steven McClurg, shedding light on optimism regarding the advancement in the spot ETF race.
McClurg expressed confidence that the SEC has no significant concerns beyond issues associated with share creation and redemption. According to him, Valkyrie’s products are well-prepared for launch, equipped with the essential ETF infrastructure.
Geraci suggested that the potential approval date for Valkyrie’s spot ETF could occur anytime after January 2. Analysts, including James Seyffart and Eric Balchunas, have pointed to January 10 as a possible date for batch approvals, further contributing to the anticipation surrounding the potential approval of spot Bitcoin ETFs.
SEC Expected to Approve Spot Bitcoin ETFs
The Securities and Exchange Commission (SEC) has a history of either denying or delaying spot Bitcoin ETFs, citing concerns related to market manipulation and investor protection. However, a notable shift occurred following a significant lawsuit loss to Grayscale Investments in August.
In the aftermath of this legal development, the SEC began fostering closer collaboration with around a dozen firms to explore the feasibility of introducing such funds to the market. This signaled a potential shift in the regulatory approach toward spot Bitcoin ETFs.
Industry participants, including prominent figures like Cathie Wood of ARK Invest, speculate that the SEC might opt to approve multiple applications simultaneously. This strategic move aims to prevent any single firm from gaining a first-mover advantage and could be part of the regulatory effort to ensure fairness and market stability in the context of spot Bitcoin ETFs.
Analysts at Cantor Fitzgerald, a financial services firm known for its prime brokerage and investment banking services, share the belief that the eagerly anticipated spot Bitcoin ETF is drawing closer to becoming a reality.
The company has gained confidence in the approval prospects for applications from asset managers seeking to launch a spot ETF for Bitcoin. Presently, the Securities and Exchange Commission (SEC) is reviewing 13 applications for spot Bitcoin ETFs.
It’s worth noting that the most recent application, submitted by Swiss-based Pando Asset just two days ago, is unlikely to be considered alongside the earlier submissions, indicating that the approval process might proceed in a sequential manner for these applications.
