Will a Bitcoin spot ETF get approval this week?

The U.S. Securities and Exchange Commission (SEC) is expected to vote on the Bitcoin spot ETF application this week, which means that the “big day” that the currency circle has been waiting for is coming.

Bitcoin supporters say it will be an important milestone once the industry's first successfully approved Bitcoin-backed ETF appears.

Financial Associated Press reported on January 8 that the U.S. Securities and Exchange Commission (SEC) is expected to vote on the Bitcoin spot ETF application this week. This news has the currency circle looking forward to it, which means that the long-anticipated “big day” is about to come.

According to reports, companies planning to issue a Bitcoin spot ETF have been asked to submit final changes to their applications by Monday morning. The U.S. Securities and Exchange Commission will make a final decision by January 10. Cryptocurrency industry insiders speculate that regulators may announce a series of decisions on this day.

Before a spot-backed Bitcoin ETF can begin trading, there are two regulatory approval process requirements that need to be met. First, the SEC must sign off on a 19b-4 filing by the exchange that lists the ETF, which is a proposed exchange rule change that would allow the ETF to trade on a stock exchange. This process is an important step in ensuring ETF compliance and transparency.

In addition, regulators must approve the related Form S-1, the potential issuer’s prospectus document. Currently, several large institutions, such as BlackRock and Fidelity, are applying to list Bitcoin spot ETFs.

The New York Stock Exchange and Nasdaq have submitted revised 19b-4 documents to the SEC, and the SEC plans to vote on these documents in the near future.

Regulatory agencies may take action on an issuer’s Form S-1 filings at different times or not at the same time. Typically, the S-1 file will be approved after 19b-4. If the SEC approves both sets of necessary documents, the Bitcoin Cash ETF may begin trading on the next business day after approval, but this is not guaranteed.

According to people familiar with the filing process, issuers that meet the revised year-end filing deadline may be allowed to launch Bitcoin ETFs before January 10 - the day the U.S. Securities and Exchange Commission must decide whether to approve It may veto the listing of the Ark/21Shares ETF, which is the first fund in the order of application approval.

Over the weekend, an SEC representative declined to comment on the status of the filings. But several issuers said on Friday they expected to receive final approval of their S-1 filings late Tuesday or Wednesday.

Impact Geometry

Since 2013, many asset management companies have applied to launch spot Bitcoin ETFs, but they have all been rejected by the U.S. Securities and Exchange Commission due to concerns that these products are vulnerable to market disruption. manipulation, it is difficult to protect the interests of investors.

However, since the SEC lost a key legal battle with crypto asset manager Grayscale Investments in August last year, there has been speculation that the regulator will have to acquiesce to the launch of such a product. Currently, 14 companies, including BlackRock, Fidelity and WisdomTree, submitted applications for spot Bitcoin ETFs last year and are awaiting the SEC’s decision.

Bitcoin supporters say that once the ETF backed by the largest cryptocurrency is successfully approved for listing, it is expected to represent an epoch-making watershed for the industry. This will have billions of dollars at stake and attract significant potential inflows from both retail and institutional investors.

Michael Anderson, co-founder of the crypto venture capital firm Framework Ventures, pointed out that “the market still seriously underestimates the potential impact of the approval of the Bitcoin ETF.”

The currency circle is optimistic that regulators will soon approve Bitcoin Bets on the listing of a currency spot ETF have pushed Bitcoin soaring by more than 160% last year. But this is still not enough to bring Bitcoin back to the all-time high set in November 2021, when Bitcoin reached nearly $69,000. Since the new year, Bitcoin has been hovering around $45,000.

The above is the detailed content of Will a Bitcoin spot ETF get approval this week?. For more information, please follow other related articles on the PHP Chinese website!