Bitcoin ETF on Wall Street Nears Final Stages; Approval Expected Soon
Summary:
The initiation of the first Bitcoin Exchange-Traded Fund (ETF) on Wall Street is nearing completion, with final revisions from asset managers due by January 8, says Bloomberg analyst Eric Balchunas. Several crypto fund trading exchanges have already submitted their 19-b forms with the United States Securities and Exchange Commission (SEC), marking the last steps before SEC's verdict. While an official decision date beyond January 11 has not been scheduled, most applications that satisfy the regulator's prerequisites could be approved by the next week. Grayscale's approval for its ETF conversion might appear after the first applicant's approval. These developments come despite previous denials by SEC over the past decade, citing potential market manipulation concerns.
The launching of the first-ever Bitcoin Exchange-Traded Fund (ETF) on Wall Street is nearing its final stages with the due submissions from asset managers by the morning of January 8, as per Eric Balchunas, an analyst with Bloomberg. Such revisions should be part of the S-1 filings, which must be submitted no later than Eastern Time 8:00 a.m., or 13:00 UTC, and are expected to include remaining fees and tickers from applicants - like BlackRock, who is yet to reveal the fees tied to its ETF. After markets closed on January 5th, exchanges planning to trade these crypto funds have submitted their 19-b forms. These forms, together with the S-1 filings, mark the last stages before the United State Securities and Exchange Commission (SEC) reaches a conclusion, as Balchunas explained to Cointelegraph. The SEC commissioners could express their verdict in the subsequent voting stage. Though, nothing is on the public agenda of the commission till January 11, which is when the ETF launch is anticipated by markets. In terms of the SEC reaching a decision, it can opt to employ its delegated authority policy, which is still uncertain, according to Balchunas: "We are not sure if there'll be a voting procedure... They might resort to the use of delegated authority. But we are unsure. It appears that three options are available: they either vote or use delegated authority which implies that it must be approved, considering how previous ones were denied without a vote." He predicts that most applications that meet the regulator's preconditions before December 29, will get approval by next week. Grayscale, seeking to convert its Grayscale Bitcoin Trust into a listed BTC ETF, may only get the go-ahead following the approval of the first applicant. Balchunas points out that "it wouldn't surprise me if something different happened with them". In response to the January 5th letter from Better Markets stating that ETF approval would be a historic error, Balchunas dismissed it as the "final attempt of a disgruntled crypto opponent", arguing that crypto is already accessible and ETFs aren’t introducing it for the first time. For the past decade, the SEC consistently refused to approve a spot BTC ETF, highlighting risks of potential market manipulation. But Bloomberg’s James Seyffart suggests the regulator might this time be "cornered". In related news, lawmakers' uncertainty and fear have been recognized as propelling proposed crypto regulations in the US.
Published At
1/6/2024 9:41:47 PM
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