SEC decision on spot Bitcoin ETFs expected to come today: Here’s what we know
The SEC’s meticulous planning surrounding the potential approval of a spot Bitcoin ETF was thrown into disarray yesterday, but with X account compromised and fake approval posts posted, all signs continue to point to a decision being made today.
A senior executive at a promising Bitcoin ETF issuer told The Block that the company is expecting approval for its S-1 form tonight.
Likewise Fox Business journalist Eleanor Terrett. said in A number of potential spot Bitcoin ETF issuers said they remain very optimistic about approval being passed today.
Issuers and analysts appear to agree that a decision will be completed today, but it is unclear when that will happen.
Bloomberg ETF analyst Eric Balchunas said“Official approval is likely to come sometime between 4-6pm ET today, when the derby kicks off on Thursday,” he said.
His colleague James Seyffart famous Approval could happen any time until approximately 6pm ET, which suggests it could happen after the markets close.
What counts as approval?
The approval process is fairly simple, but there are a few moving parts.
It would be a big step forward if the SEC approved the Form 19b-4 filed by each spot Bitcoin ETF applicant. This should appear on the SEC website. This is a key signal that a spot Bitcoin ETF has been approved.
However, the final step is for the S-1 form to become effective. This will likely appear in EDGAR, the SEC’s filing system. The main difference is that the form no longer has red text saying “Documentation is incomplete and subject to change.”
Once the Form 19b-4 is approved and the Form S-1 is deemed valid, you can begin trading. The issuers said the ETF would be ready to begin trading tomorrow if approved today.
Why does the S-1 form come first?
Stuart Barton, co-founder of Volatility Shares, speculates that the S-1 form may come first to create a level playing field.
“There are a few things going on, so obviously the S-1, effectively the fund’s registration statement — I have a feeling it will be approved first and the reason is I think the goal of the SEC is to get everyone into the market at the same time. can.”
Barton said approving the 19b-4 before the S-1 could potentially give Grayscale a head start because it already has effective funding.
Barton believes it can all happen within 30 minutes of the end of the process itself.” I think their goal is to level the playing field, bringing others to the same level as Grayscale and making 19b-4 available to everyone. .at the same time.” Barton said.
unexpected tweet
On Tuesday, the SEC’s official account posted that the SEC has approved the listing of Bitcoin ETFs on all registered stock exchanges, along with an image quoting SEC Chairman Gary Gensler. It was soon deleted, with a follow-up post claiming it was not approved and that a spot Bitcoin ETF had not been approved up to that point.
The SEC said it will cooperate with law enforcement to investigate violations and related misconduct. X said the breach occurred when someone gained control of the phone numbers associated with the account. The social media platform said the SEC did not have two-factor authentication set up for its accounts when they were compromised.
This exploit has caused some alarm. An executive at a prospective ETF issuer told Reuters he was concerned the SEC could delay or withhold approval for spot Bitcoin ETFs as a result.
Final request for fee change
Over the past few days, many promising spot Bitcoin ETF issuers have lowered their fees to make their products more attractive upon launch. This morning BlackRock and Ark Invest/21Shares cut their fees further.
BlackRock lowered the sponsor fee on its potential spot Bitcoin ETF from 0.3% to 0.25% and reduced the temporary discount on the first $5 billion of assets from 0.2% to 0.12% for the first 12 months after launch.
Ark Invest/21Shares is also reducing its fees from 0.25% to 0.21% under its latest S-1 form and keeping fees at zero for the first six months or up to $1 billion in assets.
Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.
