|
|
Edited by Ritu13 at 22-12-2023 01:58 PM
The extensive cryptocurrency community, especially as the decision date approaches, eagerly anticipates the approval of the spot Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC). Bloomberg ETF analysts Eric Balchunas and James Seyffart have been prominent figures in discussions about the SEC's decisions on a series of spot Bitcoin ETF applications. Both predict a 90% likelihood of approval for the new products.
Seyffart recently announced that the window for the SEC to approve or reject a series of spot Bitcoin ETFs in the United States is very narrow. He pointed out that the current window is between January 5th and 10th, 2024, indicating that approval could come before or during that week.
In response to Seyffart's announcement, Balchunas stated that they should expect more changes to S-1 applications this week. Meanwhile, the analysts confirmed that due to regulatory requirements for all potential Bitcoin ETF issuers to submit applications offline, there will be no updates to 19b-4. Hashdex, a cryptocurrency asset management company, is one of the latest companies to update its 19b-4 application with the SEC.
BTC ETF Redemption Model
There is also discussion about potential ETF redemption models, particularly concerning the trading and market departments of the institution that held meetings with some participants proposing spot Bitcoin ETFs. In a meeting with the SEC, BlackRock discussed a summary of the "cash create" model or options for a "physical" redemption model for the upcoming ETF proposal.
Applicants like BlackRock seem to prefer the "physical" model, providing the cleanest structure for asset managers and ultimate investors. Balchunas noted rumors suggesting that the first batch only allows cash creation. If these rumors are true, and BlackRock insists on a preference for the "physical" redemption model, the asset management company is likely to miss out on the first batch.
Additionally, while Grayscale has updated its application, it is still uncertain whether converting its GBTC to an ETF in the first batch will be allowed. Regardless of the SEC's decision, expectations are continually on the rise. |
|
Post time 10-12-2023 12:18:26