BlackRock, VanEck, and other financial institutions have swiftly updated their filings for launching spot Bitcoin exchange-traded funds (ETFs), following immediate feedback from the U.S. Securities and Exchange Commission (SEC), Eric Balchunas, an ETF analyst at Bloomberg reported.
The updates, made on Tuesday, include shareholders protection in the event of insolvency and preventing conflicts of interest among the ETF’s authorized participants. This flurry of activity comes as the SEC’s January 10 deadline for a decision on one of the applications looms.
The SEC’s prompt response to the initial filings, which detailed fees for the proposed products, has led to a 24-hour cycle of amendments. The updated filings, including those from Invesco and Galaxy, now feature reduced fees and revised language aimed at addressing regulatory concerns. The SEC‘s engagement with prospective issuers like ARK/21Shares, Grayscale, and others signals a potential shift in the regulatory landscape, with the possibility of all applications being approved this week.
Approval of the spot Bitcoin ETFs by the SEC would mark a milestone in the integration of cryptocurrencies into mainstream financial markets, offering investors a regulated and accessible way to invest in Bitcoin through traditional brokerage accounts. This could lead to increased demand and liquidity in the crypto market, further establishing its legitimacy among retail and institutional investors.
The SEC has historically taken a cautious approach to spot Bitcoin ETFs, often deferring decisions to ensure thorough regulatory compliance. However, the recent proactive amendments by companies, including major traditional finance player BlackRock, suggest that the industry is making concerted efforts to align with regulatory standards. The SEC’s decision, expected imminently, could pave the way for a new era of crypto investment products, potentially attracting a broader investor base and enhancing the overall stability and maturity of the cryptocurrency market.
Bitcoin traded just under US$46,800 at the time of writing, according to CoinGecko data. The world’s largest cryptocurrency by market capitalization topped US$47,000 yesterday for the first time since April 2022.
