BlackRock and Bitwise have recently made major adjustments to their S-1 filings for their Spot Bitcoin ETFs submitted to the U.S. Securities and Exchanges Commission. These changes represent a significant step towards SEC acceptance of Bitcoin Spot ETFs. Update on the evolution of the future of cryptocurrency ETFs.
What changes have been made to Bitcoin Spot ETFs?
Asset management giants BlackRock and Bitwise recently amended their S-1 filings for their Bitcoin spot ETFs with the U.S. Securities and Exchange Commission (SEC).
These updates, made on Monday, December 4, 2023, represent a significant milestone in the SEC’s acceptance of the ETFs and the institutional adoption of Bitcoin. Until now, the SEC had been reluctant to approve a spot Bitcoin ETF, delaying all applications received. However, it’s important to note that such delays in decisions of this type are common and can be interpreted as an indicator that discussions between the various parties are ongoing.
The updates to two applications from BlackRock and Bitwise, filed one after the other, appear to meet the SEC’s guidelines.
Specifically, BlackRock’s updated filing incorporates a report audited by PricewaterhouseCoopers (PWC) addressing added measures to combat money laundering, as well as new information on steps the fund administrator (BlackRock) will take to monitor unusual price movements.
What does the future hold for cryptocurrency ETFs?
Many analysts, including James Seyffrat and Eric Balchunas, believe that the recent changes suggest that the SEC, may issue similar guidance to other companies awaiting approval of their Bitcoin spot ETF.
According to them, these updates are probably the result of numerous conversations between the two parties, and that approval of the first spot Bitcoin ETF would be imminent, expected before January 10, 2024.
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
In parallel, BlackRock recently submitted a Form S-1 to the SEC for its spot Ethereum ETF, under the name “iShares Ethereum Trust”, iShares being BlackRock’s ETF arm. BlackRock’s move comes at a time when several other players, such as VanEck, Grayscale, and others, have also submitted applications for spot Ethereum ETFs.
While BlackRock is making great strides, the SEC recently postponed its decision on Bitcoin spot ETF applications submitted by Global X and Franklin Templeton, extending a trend of caution regarding the approval of cryptocurrency ETFs in the U.S.
As for Grayscale, the company that manages the Grayscale Bitcoin Trust (GBTC), it is notably optimistic about the forthcoming approval of a Bitcoin spot ETF in the US.
Although the Securities and Exchange Commission has yet to set an official date, Grayscale is looking at potential approval around January 10, 2024, coinciding with the expected final decision on its competitors’ ETF application.
These developments come amid growing speculation that the SEC may finally be ready to approve a spot Bitcoin ETF. Indeed, such a product would offer a more accessible investment option for US companies, likely to create increased demand for Bitcoins, which could lead to a significant rise in its price.
