KEY POINTS
- Bitwise submitted its second S-1 amendment to the SEC on Monday
- BlackRock followed suit about an hour later
- The SEC has not yet said anything in public related to spot Bitcoin ETF applications
The U.S. Securities and Exchange Commission (SEC) has given multiple spot Bitcoin exchange-traded fund (ETF) applicants the "same or very similar instructions," an ETF analyst observed after Bitwise and BlackRock submitted their amended prospectus Monday.
A little over an hour after crypto index fund manager Bitwise submitted its second S-1 amendment to the SEC on Monday, New York-based asset investment giant BlackRock followed suit.
While the major Wall Street regulator has not yet said anything in public related to the spot Bitcoin ETF applications, industry watchers speculate it is something on the upside for hopeful issuers and enthusiasts.
Bloomberg Intelligence ETF analyst James Seyffart sees the latest moves from issuers as an indication that they are making progress on their applications and are actively working with the regulator to sort things out.
"SEC is obviously giving multiple issuers the same or very similar instructions," the ETF analyst wrote on X. In a follow-up tweet, he said the latest development "means that the wheel is still turning. Both the SEC and these issuers are working hard to iron things out. These filings are likely the result of many conversations and a lot of man hours on/between both sides."
Another Bloomberg Intelligence ETF analyst, Eric Balchunas, had earlier asked the community to watch out for the updated S-1 filings.
"Look for updated S-1 filings this week (which answer round two comments from SEC which I heard were exhaustive and poss final). But.. we won't see updated 19b-4s bc the SEC asked issuers to send back offline for now. Those prob be re-filed just bf [sic] approval date," Balchunas tweeted.
What does this mean? Without having read them -- it just means that the wheel is still turning. Both the SEC and these issuers are working hard to iron things out. These filings are likely the result of many conversations and a lot of man hours on/between both sides.
— James Seyffart (@JSeyff) December 4, 2023
The ETF analyst said the major issues discussed by issuers and the SEC include whether the regulator would allow in-kind creations and if it would permit Grayscale Investments to convert its GBTC into Bitcoin ETF.
LATEST: Look for updated S-1 filings this week (which answer round two comments from SEC which I heard were exhaustive and poss final). But.. we won’t see updated 19b-4s bc SEC asked issuers to send back offline for now. Those prob be re-filed just bf approval date (see below) https://t.co/ZhtN86f0Q3
— Eric Balchunas (@EricBalchunas) December 4, 2023
"The big thing everyone is buzzing about is whether SEC will allow in-kind creations. Rumor has it only cash creates will be allowed in first grouping. Many issuers ready for both (if BlackRock wins over SEC many will do in kind as well. If not they'll do cash just to get out)," Balchunas said. "Finally the other big unknown is whether Grayscale will be allowed to convert to ETF with the first grouping. And no one really knows anything or has any info on this."
