U.S. spot bitcoin exchange-traded funds (ETFs) are inching closer to becoming a reality as the exchanges set to list them have filed amended documents, indicating their anticipation of approval from the U.S. Securities and Exchange Commission (SEC) in the coming days. The amended 19b-4 filings, submitted by BlackRock, Grayscale, Fidelity, and other issuers, follow last month’s amended S-1 filings, which addressed feedback from the SEC. With over a dozen applicants vying to launch the first spot bitcoin ETFs in the U.S., it is likely that multiple issuers will receive approval simultaneously.
Representatives from two different issuers have revealed that their companies expect approvals to be granted sometime next week. However, they clarified that filing the amendments does not guarantee approval, but they remain optimistic about the outcome. The SEC has set a final deadline of January 10 for at least one application, specifically Ark 21 Shares, suggesting that the regulator may approve all the final applications it deems suitable by that date.
Grayscale, a prominent player in the cryptocurrency space, sees this filing as a significant step towards converting its bitcoin trust, GBTC, into a spot bitcoin ETF. Grayscale spokeswoman Jenn Rosenthal stated, “At Grayscale, we continue to work collaboratively with the SEC, and we remain ready to operate GBTC as an ETF upon receipt of regulatory approvals.”
According to a report by Bloomberg, the SEC’s commissioners are expected to vote on the exchange-rule filings next week. Both the 19b-4 filings and the S-1 filings need to be approved by the regulatory agency before the ETFs can be launched.
The introduction of bitcoin ETFs in the U.S. market has been highly anticipated by investors and industry participants alike. ETFs are investment vehicles that track the performance of an underlying asset, in this case, bitcoin. They offer a regulated and accessible way for investors to gain exposure to bitcoin without directly owning the cryptocurrency. The approval of bitcoin ETFs is seen as a significant milestone for the mainstream adoption of cryptocurrencies and could potentially attract a wave of institutional and retail investors.
While the SEC has been cautious in approving bitcoin ETFs in the past, citing concerns over market manipulation and investor protection, the growing interest and maturation of the cryptocurrency market have increased the likelihood of approval. If approved, bitcoin ETFs would provide a more regulated and secure option for investors to participate in the cryptocurrency market, potentially leading to increased liquidity and stability.
The launch of bitcoin ETFs in the U.S. would also bring the country closer to catching up with other jurisdictions that have already embraced such investment products. Canada, for example, approved the first bitcoin ETF in February 2021, which has since seen significant success and popularity among investors.
As the SEC’s decision on bitcoin ETFs draws near, market participants eagerly await the outcome. The potential approval of these investment vehicles could mark a significant turning point for the cryptocurrency industry, opening doors to a wider range of investors and potentially driving further growth and adoption of bitcoin and other digital assets.