SUBSCRIBE TO NEWSLETTER
Stay in the loop! Subscribe to our newsletter and gain access to exclusive insights, trends, and news from the world of business and leadership. Don’t miss out!
Investment management firms, stock exchanges, and the U.S. Securities and Exchange Commission (SEC) engaged in final wording discussions regarding spot Bitcoin Exchange-Traded Funds (ETFs) filings.
Sources familiar with the matter indicated that these talks could pave the way for the first-time approval of such funds in the U.S., likely by next week.
Details of Discussions and Upcoming Actions:
Participants, including issuers and SEC officials, discussed adjustments to the S-1 prospectus documents, a crucial step in the ETF approval process. Representatives from multiple firms anticipate final approval of these filings by late Tuesday or Wednesday, following minor changes sought by the SEC.
Asset managers are expected to update their filings to include information such as fees and details of market-makers for the ETFs.
The deadline for these updates is 8 a.m. ET on Monday, potentially leading to public disclosure the same day, per sources familiar with the ongoing process.
Regulatory Collaboration and Rule Changes:
Regulators have been collaborating with exchanges to finalize 19b-4 filings, outlining necessary rule changes for spot Bitcoin ETF launches. Late Friday, revisions to 11 of these filings were submitted, indicating progress toward the ETF approval process.
There’s anticipation that ETFs meeting year-end filing revision deadlines might gain approval for launch by January 10, a significant date for the SEC’s decision on the Ark/21Shares ETF, currently the primary candidate.
Historical Context and Pending Decisions:
The SEC previously rejected Bitcoin ETF applications, citing susceptibility to market manipulation. However, 14 firms, including major entities like BlackRock, Fidelity, and WisdomTree, await the SEC’s decision on spot Bitcoin ETFs submitted last year.
Unconventional SEC Requests and Upcoming Votes:
In an atypical move, the SEC requested issuers hoping to launch ETFs next week to prepare written requests for accelerating the effective date, usually discussed informally.
Additionally, SEC commissioners are expected to vote on 19b-4 rule changes next week, with one source indicating a potential vote on Wednesday.
