The United States Securities Regulator may Approve Spot Bitcoin ETFs

The United States Securities Regulator may Approve Spot Bitcoin ETFs

The United States Securities and Exchange Commission (SEC) is reportedly set to inform applicants of spot Bitcoin ETFs about their approval in the next few days. This news comes from a report by Reuters on December 29, which suggests that the SEC may notify the applicants on either Tuesday, January 2, or Wednesday, January 3. If approved, these applicants will have time to prepare for their ETF launch on January 10.

Potential Approval and Applicants

Although Reuters did not specifically mention which applicants are likely to receive approval, at least a dozen asset managers are reportedly planning to offer spot Bitcoin ETFs on various exchanges including Nasdaq, Cboe BZX, and NYSE Arca. Some of the firms that submitted amendments on December 29 include prominent names such as BlackRock, VanEck, Valkyrie, Bitwise, Invesco, Fidelity, and WisdomTree. Several other firms, including Ark Invest and Grayscale, have also recently submitted amendments.

The recent batch of amendments submitted by asset managers is just one example of the ongoing engagement between these firms and the SEC. In fact, several applicants even participated in a rare joint conference call with the SEC on December 21, in addition to attending earlier individual discussions. Each firm has gone through numerous previous amendments as well.

Cash Creations and Redemptions

One of the key points of discussion between the SEC and the applicants has been the issue of cash creations and redemptions. Initially, many applicants aimed to allow in-kind creations and redemptions, which would have enabled certain ETF participants to transact in Bitcoin. However, recent amendments indicate a shift towards cash models, suggesting that the approval for in-kind transactions may not be granted initially.

Regardless of the specific model chosen, any spot Bitcoin ETF will require the participating fund or its partners to hold Bitcoin. This requirement will inevitably drive up the demand for the cryptocurrency, potentially leading to increased market activity and liquidity. Furthermore, the approval of spot Bitcoin ETFs will provide investors with easier access to Bitcoin as an investment vehicle, potentially attracting more mainstream interest in the digital asset.

Previous Concerns Addressed

In the past, the SEC had expressed concerns about surveillance-sharing agreements and the prevention of market manipulation when it comes to Bitcoin ETFs. However, these issues have largely been resolved through discussions and amendments. This indicates a positive progress towards the approval of spot Bitcoin ETFs and a growing understanding of the cryptocurrency market within regulatory bodies such as the SEC.

The United States Securities and Exchange Commission is expected to inform applicants of spot Bitcoin ETFs about their approval in the coming days. This news has generated significant anticipation within the investment community, as numerous asset managers aim to offer Bitcoin ETFs on various exchanges. The ongoing engagement and discussions between these firms and the SEC indicate a positive trend towards the approval of these ETFs, which could have a significant impact on the cryptocurrency market and investor accessibility to Bitcoin.


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