With the price of Bitcoin surpassing $42,000, BlackRock and Bitwise have intensified their efforts to gain approval for their spot Bitcoin ETF. Both giants have made significant progress in the regulatory environment by filing updated S-1 prospectuses. Here are the details…
BlackRock’s strategic moves
BlackRock, one of the powerful institutions in the financial sector, has signaled its entry into the competitive arena of spot Bitcoin ETFs by submitting a new S-1 amendment. This development is consistent with the SEC’s apparent coordination of issuing orders to multiple issuers. Bloomberg ETF Strategist James Seyffart reported on ongoing discussions between regulators and issuers, underscoring the complexities involved in navigating the regulatory environment.
This one dropped 65 minutes earlier than BlackRock: https://t.co/Mp8Ja1uHDY
— James Seyffart (@JSeyff) December 4, 2023
BitwiseInvest, a major player in the cryptocurrency space, also filed a second S-1 amendment for its spot Bitcoin ETF. The ongoing amendments and filings underscore the collaborative efforts and extensive discussions taking place between issuers and the SEC. Although specific details of these changes have not been disclosed, the flurry of activity suggests a concerted effort to address concerns and streamline the approval process.
SEC’s next moves
Just days before these developments, the US SEC began discussions with major applicants, including Grayscale and BlackRock, regarding a Bitcoin ETF. Bloomberg’s Eric Balchunas revealed that BlackRock has already provided $100,000 in seed capital for the Bitcoin ETF, further emphasizing the company’s commitment to the initiative. Bloomberg’s ETF expert Eric Balchunas expects significant developments next week as the SEC is expected to consider a second round of comments. BlackRock has filed an updated S-1 filing, and rumors are circulating that this week’s comments could be comprehensive and possibly final.
What does Bitcoin ETF expert say?
Balchunas highlighted industry speculation about whether the SEC would allow in-kind filings for spot Bitcoin ETFs. Rumors suggest that only cash applications may be allowed initially, encouraging applicants to prepare for a variety of scenarios. If in-kind applications are allowed, authorized participants can provide Bitcoin in exchange for ETF units, offering direct exposure to cryptocurrencies without a custodian. In contrast, the cash method involves providing cash in exchange for ETF units. The SEC has reportedly instructed spot Bitcoin ETF applicants to consider cash-only applications.
Balchunas emphasized that discussions between the SEC and potential issuers are ongoing and cited Bitwise’s recent S-1 amendment as evidence of ongoing talks. These developments mark a pivotal moment on the road to spot Bitcoin ETF approval. As the SEC reviews updated filings and continues discussions with industry players, the cryptocurrency market is eagerly awaiting the regulatory green light that could further boost Bitcoin’s price and solidify its position in the financial mainstream.
