As the spot Bitcoin exchange-traded fund (ETF) issuers filed applications for their revisions to reveal previously undisclosed fee structures, the U.S. Securities and Exchange Commission (SEC) has returned comments. The SEC’s critiques came swiftly on the heels of the updated fee disclosures, sparking speculation within the crypto community about a potential delay in the highly anticipated approvals of the Bitcoin ETFs.
Chamber of Digital Commerce CEO Perianne Boring expressed her concern about the SEC’s comments, stating in a social media post, “SPOT BITCOIN ETF UPDATE: The SEC just issued additional comments on pending applicant’s S-1s. This is a delay signal.” This post quickly gained traction, garnering over one million views and sparking insecurity among crypto investors.
In response to the speculation, Bloomberg Intelligence ETF analyst James Seyffart weighed in on the SEC’s pending decision. Seyffart mentioned, “I don’t think this is necessarily a delay signal,” adding, “Really this just shows how quickly the SEC is turning these things around.” He further emphasized the efficiency of the SEC’s response time, stating, “Borderline unheard of to send over a document to the SEC in the morning and get comments back the same day. If they wanted to delay, the issuers wouldn’t have gotten comments back tonight.”
It’s important to note that the submitted revisions are S-1 forms, and the SEC does not need to approve them before approving 19b-4, the spot Bitcoin ETF application forms. Finance lawyer Scott Johnsson clarified this, stating, “S-1s do not NEED to be complete when 19b-4s are approved.” He provided an example from 2022, saying, “Take futures ETFs in 2022. Hashdex didn’t even get initial comments until after its 19b-4 was approved.” Johnsson concluded by highlighting the SEC’s efforts to push everything forward for a quick approval and launch.
Fox Business journalist Eleanor Terrett further confirmed that the SEC has no intention of changing the schedule. She stated, “Just spoke with a couple of people who received additional comments. They say they’re not worried, and the SEC hasn’t conveyed a change of plans.” Terrett added her perspective, “My sense is that they’re fairly confident this is just part of the process to get everything in before Jan. 10.”
