SEC Efforts Intensify in Response to Latest Bitcoin ETF Filings: Insider Source
The U.S. Securities and Exchange Commission (SEC) is reportedly working diligently to address the recent filings for bitcoin exchange-traded funds (ETFs), according to an insider source. Shortly after the companies submitted their documents outlining the proposed products’ fees, SEC officials provided feedback to the potential issuers. The insiders expect the issuers to submit updated documents by Tuesday. The comments mainly focused on minor details in the amended forms, rather than major changes. The source believes that these comments will not impact the timeline for potential regulatory approval. Notable potential issuers such as BlackRock, Grayscale, and Fidelity had previously disclosed their expected fees in their filings on Monday.
James Seyffart, a Bloomberg Intelligence analyst closely monitoring the bitcoin ETF applications, noted that it is highly unusual for applicants to receive feedback from the SEC on the same day as their amended filings. This demonstrates that regulatory dialogues between the SEC and the prospective ETF issuers are ongoing. Most of these issuers proposed the creation of spot bitcoin ETFs last summer. The SEC has a January 10, 2024 deadline for one of the applications submitted by Ark and 21 Shares. In recent weeks, the agency’s increased communication with issuers, evident in their numerous amended filings, has raised hopes of potential approval for spot bitcoin ETFs to trade in the U.S. Several exchanges, including Nasdaq, NYSE Arca, and Cboe BZX, also submitted amended 19b-4 documents on Friday, further reinforcing these positive expectations.
To commence trading, both 19b-4 and S-1 filings must receive effective status from the SEC. Supporters of a bitcoin ETF believe that a regulated financial product would allow traditional financial institutions and retail investors to participate in price movements without the need to establish wallets or navigate unfamiliar financial structures. The SEC has previously rejected every application for a spot bitcoin ETF since 2013. While the agency has not publicly disclosed its stance on the latest round of applications, the substantial feedback provided, along with the swift response, signals optimistic prospects for the nearly dozen applications seeking approval.