The Securities and Exchange Commission (SEC) has issued new instructions to Bitcoin ETF applicants, ahead of a possible approval in early January.
The SEC has instructed several asset managers and administrators, seeking Bitcoin ETF approval in early January, to Update your Form S-1 filings by December 29.
According to Reuters, the U.S. securities regulator has set Friday as the deadline for several fund managers hoping to launch a Bitcoin exchange-traded fund to submit final revisions to their fund proposals. Reuters cited sources familiar with the matter, who asked to remain anonymous because of the confidentiality of the SEC's discussions with fund managers.
El January 10, 2024 is the deadline for the SEC to decide whether to approve or reject the Bitcoin ETF application jointly submitted by Ark Invest and 21Shares. Analysts are betting that by this date, the SEC will approve not only Ark Invest’s application, but also those of other fund managers seeking approval for a Bitcoin spot ETF.
As reported by this media, the SEC has been meeting frequently with BlackRock, Grayscale, Fidelity and Invesco, and at least two of these fund managers have been instructed by the SEC to submit final changes to their S-1 forms by the weekend, according to Reuters.
The first wave of Bitcoin ETF approval?
The rumors that have emerged about the possible approval of a Bitcoin spot ETF this year, following the presentation made by BlackRock, seem to finally become a reality. This 2023, the crypto community has remained in the dark, regarding the decision that the SEC could make regarding this investment vehicle listed for Bitcoin.
Ever since BlackRock, currently the largest asset manager in the world, revealed its intention to launch a Bitcoin ETF, rumors that the SEC might approve a spot ETF began to gain traction; in addition, with its filing, the investment giant motivated others to also join the race for this exchange-traded investment vehicle. In the case of Ark Invest, Cathie Wood’s asset manager has been waiting for several years to launch an exchange-traded fund that would allow its investors to gain direct exposure to the largest cryptocurrency on the market.
However, it seems that the SEC is now willing to approve a Bitcoin ETF. Experts on the subject have pointed out that there is a 90% chance that the securities regulator will approve several of the Bitcoin exchange-traded fund applications that have been filed this year. In addition to this, Reuters indicated that the SEC is signaling that it is prepared to approve several Bitcoin exchange-traded funds next month.
The news agency emphasized that fund managers who do not comply with the new instructions issued by the SEC will not be part of the First wave of potential spot ETF approvals at the beginning of January.
“(The SEC) could grant approval (to the Bitcoin spot ETF) in the first business days of 2024”the agency said.
A favorable scenario for a new bullish rally
All the signals that the SEC is giving, coupled with the proximity of the next Bitcoin halving, the possible interest rate cuts by the Federal Reserve (FED) next year and greater regulatory clarity on the crypto industry, are creating a favorable scenario for the next bull market for Bitcoin and cryptoassets.
Analysts also point out that the approval of a Bitcoin ETF would significantly increase institutional demand for the cryptocurrency, as well as investor interest in the cryptoasset sector in general.
According to Willy Woo, a crypto analyst and partner at CMCC Crest, Bitcoin is quickly becoming one of the most sought-after alternative investment assets on Wall Street, indicating that the market-leading cryptocurrency is currently poised to become “a major bucket for wealth allocation.”
Regarding the final changes that asset managers are making to the S-1 form, it has been learned that BlackRock, Fidelity and Franklin Templeton are preparing to seed their Bitcoin exchange-traded funds with several million dollars and to inject new resources into the announcements related to their respective spot ETF proposals.
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