In recent days, four prominent Bitcoin (BTC) exchange-traded fund (ETF) issuers have engaged in meetings with the Securities and Exchange Commission (SEC). These discussions bring hope for the approval of spot Bitcoin ETFs soon. BlackRock, Grayscale, Franklin, and Fidelity have all had meetings with the SEC, indicating the growing interest and efforts surrounding Bitcoin ETF applications.
BlackRock’s Continuous Efforts
BlackRock, in particular, stands out as it met with federal regulators for the third time in as many weeks on December 12. The company made amendments to its spot Bitcoin ETF application to facilitate participation from large banks. This update introduced new shares in the fund that can be purchased with cash, expanding the options beyond using cryptocurrencies. The SEC is expected to make a decision on BlackRock’s application by January 15, with the final deadline set for March 15.
ETF analyst James Seyffart noted that during these meetings, the Division of Trading and Markets and the Division of Corporate Finance were present, as they hold the key to approving or denying the 19b-4’s and S-1’s. This demonstrates the significance and seriousness of these discussions.
Optimism and Progress
Industry experts have also expressed optimism regarding the progress being made in the spot Bitcoin ETF race. Eric Balchunas, an ETF expert, highlighted BlackRock’s repeated meetings with the SEC, emphasizing the presence of Rachel Aquirre, head of all US iShares, in the recent meeting, signifying its importance.
According to Nate Geraci, President of ETF Store, Valkyrie’s Steven McClurg expressed optimism about the progress made in the spot ETF race. McClurg stated that the SEC has no major concerns apart from issues related to share creation and redemption, and the necessary ETF infrastructure is in place for Valkyrie’s products.
Analysts have identified January 10 as a possible date for batch approvals, while others believe approvals could come anytime after January 2. The SEC’s historical concerns over market manipulation and investor protection have led to denials or delays for spot Bitcoin ETFs. However, following a lawsuit loss to Grayscale Investments in August, the agency has been collaborating closely with several firms to explore the possibility of bringing such funds to the market.
Cantor Fitzgerald, a financial services firm known for its prime brokerage and investment banking services, believes the long-awaited spot BTC ETF is inching closer to reality. The company has grown confident in the approval of applications from asset managers seeking to launch a spot ETF for Bitcoin. Currently, the SEC is evaluating 13 applications for spot BTC ETFs. However, the most recent application by Swiss-based Pando Asset, submitted just two days ago, is unlikely to be considered alongside the earlier submissions.
“The fact that Rachel Aquirre, head of all US iShares, was present in the recent meeting is particularly significant.”
– Eric Balchunas
“The SEC has no major concerns apart from issues related to share creation and redemption, and the Valkyrie products are ready for launch with the necessary ETF infrastructure in place.”
– Steven McClurg
