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Next Week Crucial for Spot Bitcoin ETFs as SEC Decision Looms

Published 06/01/2024, 07:31
Updated 06/01/2024, 07:45
© Reuters.  Next Week Crucial for Spot Bitcoin ETFs as SEC Decision Looms
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Coin Edition -

  • Imminent SEC decision on spot Bitcoin ETFs could enable trading next week, marking a significant event in crypto finance.
  • Grayscale and top firms finalize submissions for Bitcoin ETFs, anticipating the SEC’s crucial approval for market entry.
  • Spot Bitcoin ETFs at a turning point with pending SEC review, signaling a notable shift in the cryptocurrency investment landscape.

The financial world is on the cusp of a significant development as prospective issuers of spot Bitcoin Exchange-Traded Funds (ETFs) gear up for a potential launch as early as next week. The pending approval from the Securities and Exchange Commission (SEC) marks a pivotal moment in integrating cryptocurrency into mainstream financial markets.

According to a post on X by Nate Geraci, Grayscale Investments will submit an amended form 19b-4 in the next three working days. This move is essential, as their previous paperwork now requires updating. This vital filing will appear initially on the NYSE website’s rulemaking section.

For these spot bitcoin ETFs to commence trading, the SEC must approve each fund’s outstanding 19b-4 forms. These approvals are likely to be first visible on the SEC’s website. Additionally, the S-1 forms need to become effective. However, the approvals of these separate forms might not coincide, adding a layer of complexity to the timeline.

Sources predict that the 19b-4 approvals could arrive mid-to-late next week, hinting at a possible start of trading by Thursday or Friday. However, there remains uncertainty, especially considering some ETFs, like BlackRock, don’t face deadlines until March.

Eric Balchunas, a seasoned Bloomberg Intelligence ETF analyst, recently remarked that the SEC provides final comments on X. Following this, issuers are expected to submit their complete 19b-4s and S-1s. Balchunas’s insights suggest that the process is nearing its culmination, although official approval is still pending.

In the last 2 days, multiple prospective spot bitcoin ETF issuers, including Fidelity, Grayscale, Ark Investments, Valkyrie, and VanEck, have filed Form 8-As. This development is a significant stride forward, indicating that these issuers are ready to trade on an exchange once their products receive approval.

The post Next Week Crucial for Spot Bitcoin ETFs as SEC Decision Looms appeared first on Coin Edition.

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