Potential Historic Week for Bitcoin as Spot ETF Approval Looms
Summary:
Bitcoin could be moving towards a transformative week as potential approval of spot Bitcoin exchange-traded funds (ETF) looms. Issuers are slated to complete their S-1 amendments by Jan. 8, succeeding the 19b-4 amendments filed by several asset managers on Jan. 5. While S-1 filings provide information on fees and identities of market-makers, both S-1 and 19b-4 filings require SEC approval before the launch of a particular Bitcoin ETF. Speculation abounds regarding multiple ETF approvals on the same day, potentially heralding a new chapter for Bitcoin and the broader cryptocurrency market.
Bitcoin is gearing up for a significant turning point as a potential green light for spot Bitcoin (BTC) exchange-traded funds (ETF) could be on the horizon, a development many have been eagerly keeping an eye out for. This agenda-setting week is expected to kick off with issuers firming up their S-1 revisions by Monday. The revisions to their spot Bitcoin ETF applications are anticipated to happen at 8:00 am ET, or 01:00 pm UTC, on Jan. 8 as reported by several reliable sources. This follows the submission of 19b-4 amendments made by 11 asset management entities to their submissions on Jan. 5. The expected S-1 modifications will likely unveil information on charges or market-maker identities related to these possible Bitcoin ETFs, as highlighted in a recent news by Reuters on Jan. 5.
Insights from the report align with particulars acquired by Bloomberg ETF analyst Eric Balchunas, who also foresaw the final S-1 submissions being deposited on Jan. 8. Balchunas shared via a tweet on Jan.5, his belief that the SEC is lining everyone up for a January 11 launch and said, "It's basically done." However, he pointed out that the SEC had yet to officially affirm this timeline.
These S-1 adjustments will accompany numerous other S-1 updates submitted by several Bitcoin ETF contenders in recent months. Earlier, it was widely believed that a final set of S-1 amendments would have manifested by late December 2023. Upon completion of the revised S-1 submissions, various issue makers are profoundly optimistic about obtaining definitive approvals by either Jan. 9 or Jan. 10, as cited by Reuters.
Despite receiving approval, it doesn't automatically warrant the immediate introduction of a specific spot Bitcoin ETF. Both S-1 and 19b-4 filings need to earn approval by the SEC. On Jan 5th, eleven asset management entities filed 19b-4 amendments to their applications. This included significant names such as BlackRock, Valkyrie, Grayscale, Bitwise, Hashdex, ARK & 21Shares, Invesco & Galaxy, Fidelity, Franklin Templeton, VanEck and WisdomTree.
The SEC Form 19b-4 is utilized to inform the SEC about an intended rule modification by a self-regulatory organization under Rule 19b-4 of the Securities Exchange Act of 1934. The S-1 presents fundamental business and financial specifics about an issuer relating to a specific securities offering. The 19b-4 intends to procure information necessary for the public to offer commentary on the suggested rule modification. As per U.S. securities laws, the SEC's review and approval or refusal process could take a maximum of 90 days post the official filing of the 19b-4 form.
The cryptocurrency world waits with bated breath in great anticipation for the U.S. SEC to endorse a spot Bitcoin ETF by Jan. 10. ARK, led by prominent investor Cathie Wood, in tandem with its European partner 21Shares, is first in line for the SEC's verdict on Jan.10, with speculations rife about multiple ETF approvals being issued simultaneously.
Published At
1/8/2024 12:34:23 PM
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