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Edited by Ritu13 at 22-12-2023 01:55 PM
Industry professionals are full of confidence, eagerly awaiting the U.S. Securities and Exchange Commission (SEC) to make approval decisions on spot Bitcoin ETFs next month. Swan Bitcoin CEO Cory Klippsten, in an interview with Bloomberg, predicted that the approval window might have narrowed down to January 8th, 9th, or 10th, 2024.
A list compiled by Bloomberg Intelligence analyst James Seyffart indicates that there are currently 13 proposed spot Bitcoin ETFs submitted to the SEC.
This article will summarize the latest developments on these 13 spot Bitcoin ETF proposals.
Grayscale
Industry observers suggest that Grayscale Investments defeated the SEC in court in August, leading to increased optimism for the approval of spot Bitcoin ETFs. The court ruled that the regulatory agency rejected the conversion of Grayscale Bitcoin Trust (GBTC) into an ETF but allowed the launch of a Bitcoin futures-based ETF, deeming the decision "arbitrary and capricious." The SEC chose not to challenge this ruling.
Grayscale stated that GBTC is prepared to operate as an ETF once regulatory approval is obtained, emphasizing its intention to "collaborate rapidly with the SEC." In a blog post on December 1st, Grayscale acknowledged the uncertainty of the spot Bitcoin ETF approval timeline but expressed confidence that it's "a matter of when, not if."
Chief Legal Officer Craig Salm mentioned that, if Grayscale secures SEC approval, the company plans to move GBTC from the OTCQX market to NYSE Arca immediately. The company asserted that the conversion to an ETF, coupled with simultaneous issuances and redemptions, would essentially eliminate any discounts or premiums historically held by the stock, allowing the trust to closely track the value of BTC.
Ark Invest/21Shares
Those following the Bitcoin ETF race are likely familiar with Ark Invest and 21Shares, who first collaborated in 2021 to propose a spot Bitcoin fund. The application was rejected in March 2022 and again in February 2023, with the latest reapplication made in April, preceding other industry giants like BlackRock and others.
The SEC is expected to rule on the latest submission on January 10th. Some industry observers believe that on that day, the regulatory body will also decide the fate of similar proposals from other issuers.
Ark CEO Cathie Wood stated, "While we do think we are in the lead, many companies will likely get approval simultaneously, and depending on how they've submitted their applications, it could be more than six getting approved at once."
The two entities provided their third update on the Bitcoin ETF application on November 20, indicating a sponsor fee of 0.80% of the Bitcoin held by the trust. The fund's shares will trade on the Cboe BZK exchange with the ticker symbol ARKB.
BlackRock
BlackRock, a financial giant managing approximately $9 trillion in assets, joined the spot Bitcoin ETF race in June, prompting many other companies to raise their bids for such products. BlackRock's proposed iShares Bitcoin Trust will use the IBTC ticker code and trade on Nasdaq.
Last month, the company met with officials from the SEC's Division of Trading and Markets multiple times. The announcement of its November 20 meeting outlined the differences between the physical and cash redemption models.
Authorized participants in different ETFs use two main methods to participate in the creation and redemption of shares: in-kind or cash transactions. In an in-kind transaction, authorized participants exchange ETF shares for a corresponding basket of securities reflecting the ETF's holdings. In a cash transaction, authorized participants create or redeem shares for cash instead of securities.
A document from November 28 noted, "Certain unresolved issues exist with the physical model, as recognized by the SEC." The latest amendment to BlackRock's proposal, submitted on Monday, specifies that the trust will only accept in-kind creation and redemption requests from authorized participants and market makers with implemented compliance programs.
The updated document also added details about the company raising $100,000 in seed funding for the fund.
Bitwise
Bitwise's latest S-1 amendment was released on the same day as BlackRock's. The Bitwise Bitcoin ETF (previously named Bitwise Bitcoin ETP Trust Fund) will trade on NYSE Arca with the ticker symbol BITB.
Bloomberg analysts stated, "The SEC and these issuers have been working to address issues, and these filings may be the result of multiple conversations and a significant amount of work on both sides."
Bitwise Chief Investment Officer Matt Hougan noted that the conversations between issuers and the SEC felt different this time, one of the reasons why "this time does feel different than a few months ago."
Like other companies, Bitwise has been hoping to launch a spot Bitcoin ETF for several years. The company submitted a whitepaper of over 100 pages in October 2021, indicating that the CME Bitcoin futures market leads the spot and unregulated Bitcoin futures markets. Additional research published suggested that the new Bitcoin ETP is unlikely to have a major impact on the CME Bitcoin futures market prices.
In a filing submitted in September, Bitwise addressed eight points of contention raised by the SEC in its previous application. |
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Post time 13-12-2023 12:40:52