KEY POINTS
- Thirteen issuers are waiting for the SEC's decision on their spot Bitcoin ETF filings
- An ETF analyst predicted that the window is now between Jan. 5 and 10
- The SEC has not yet said anything related to spot Bitcoin ETF applications
A spot Bitcoin exchange-traded fund (ETF) in the U.S. is most likely coming as 2024 commences since the U.S. Securities and Exchange Commission (SEC) has reportedly advanced its discussion with hopeful issuers and is talking about key technical details with them.
The SEC, the financial regulator that scrapped multiple spot Bitcoin ETF applications in the past over fear of market manipulation, may be making progress with its stance on the highly anticipated cryptocurrency investment vehicle and might very soon approve multiple applications, Reuters reported Thursday, citing individuals who are familiar with the proceedings but have requested anonymity as its sources.
So far, 13 applicants are waiting for the SEC's decision on their spot Bitcoin ETF filings. Among them are the New York-based asset management giant BlackRock, Cathie Wood's ARK Invest and Grayscale Investments.
While the report did not reveal the name of the issuers the regulator is currently discussing technical details with, it disclosed that the ongoing discussion includes "substantive details, some of which are usually discussed near the end of an ETF application process," citing "half a dozen industry executives and SEC public memos."
There are also discussions involving "custody arrangements; creation and redemption mechanisms and investor risk disclosures," as per the report.
It is worth noting that earlier this month, Bloomberg Intelligence senior ETF analyst Eric Balchunas mentioned a couple of much-talked-about issues involving spot Bitcoin ETF applications, which of them are in-kind or cash creations and redemptions and whether or not the SEC would allow Grayscale to convert GBTC into ETF in the first grouping.
"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," he wrote in a thread on X. "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)."
"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.... That is all for now," he added.
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).
— Eric Balchunas (@EricBalchunas) December 4, 2023
When exactly the SEC will release its decision on the spot Bitcoin ETF applications remains unknown. However, Bloomberg Intelligence ETF analyst Jeff Seyffart predicted that the window is now between Jan. 5 and 10 next year, with the decision most likely coming out either on a Monday, Tuesday or Wednesday.
Window is officially Jan 5th to Jan 10th. Really this means that any potential approval orders are going to come on either Monday Jan 8, Tuesday Jan 9, or Wednesday Jan 10. Mark your calendars people. https://t.co/8ob8Y6pgU5
— James Seyffart (@JSeyff) December 1, 2023
"Window is officially Jan 5th to Jan 10th. Really this means that any potential approval orders are going to come on either Monday Jan 8, Tuesday, Jan 9 or Wednesday, Jan 10. Mark your calendars people," Seyffart said noted on X.
