US Bitcoin ETF Approvals Expected Early 2024 Despite Last-Minute Amendments
Summary:
Despite Bitcoin exchange-traded funds (ETFs) hopefuls rushing to incorporate new cash-only requirements into their proposals, certain experts predict approvals in the U.S. by early 2024. Bloomberg ETF analysts, James Seyffart and Eric Balchunas, believe a spot Bitcoin ETF will still be approved by the U.S. Securities and Exchange Commission (SEC) in January 2024. Multiple applicants like ARK, Bitwise, and Valkyrie have set up a cash-only model, yet some including Grayscale and WisdomTree still have in-kind or cash in their filings.
In the closing month of 2023, Bitcoin (BTC) exchange-traded funds (ETF) hopefuls are hustling to incorporate fresh cash-only stipulations into their plans. But despite this rush, market experts are still forecasting U.S. ETF approvals by the start of 2024. Bloomberg ETF analysts, James Seyffart and Eric Balchunas, believe that a spot Bitcoin ETF will gain approval from the U.S. Securities and Exchange Commission (SEC) in January 2024, even though applicants are hastily adjusting their proposals with new modifications.
On December 21, Seyffart shared his insights on X (previously known as Twitter), regarding BlackRock’s most recent spot Bitcoin ETF update received on December 18, which adhered to the cash redemption framework laid out by the SEC, in contrast to in-kind redemptions, which entail non-cash transactions like BTC.
Seyffart pointed out that in BlackRock's latest iShares Bitcoin Trust ETF S-1 registration statement, the phrase "prime broker and the trade credit lender" was substituted with "prime execution agent." He suggested that this alteration might not be well received by the SEC.
"It will be captivating to track who modifies their documents following this," Seyffart noted, implying that the SEC might turn down a provision where a secondary party would handle Bitcoin transactions on behalf of the ETF under the Bitcoin cash model.
Seyffart also observed that several applicants, including ARK, Bitwise, and Valkyrie, are already catering to the cash-only model, while others, like Grayscale and WisdomTree, are sticking with either in-kind or cash in their drafts.
Despite this, Seyffart remains optimistic, saying, "We are still of the view that this will transpire by January 10." He added that "some issuers might be left in the dust", alluding to certain applicants failing to comply with the SEC's cash-only model.
Balchunas, Seyffart’s colleague, is also of the opinion that the ongoing discussions between the SEC and multiple spot BTC ETF applicants are a promising sign for January.
He wrote, “We have learned that it wasn't one colossal conference call between the SEC and all issuers, but rather separate calls to various exchanges/issuers emphasizing it's either Cash Creates or you will be kept waiting.”
Published At
12/22/2023 3:22:50 PM
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