On December 21st, the SEC held meetings with several applicants for a Bitcoin ETF.
Several potential issuers recently held discussions with the Securities and Exchange Commission (SEC) regarding their proposed spot Bitcoin exchange-traded funds (ETFs). This has raised hopes that the SEC may soon grant approvals for these investment vehicles that would hold Bitcoin.
On December 21, the SEC engaged in calls with various ETF filers, including BlackRock, Valkyrie, ARK 21Shares, Franklin Templeton, Fidelity, VanEck, and Grayscale. These discussions involved staff from the SEC’s divisions of corporation finance, trading, and market. The news was initially reported by Fox Business, which highlighted multiple conversations between the companies and the SEC.
As of now, SEC filings have confirmed that meetings took place with seven out of the 13 potential Bitcoin ETF issuers. Bloomberg’s Eric Balchunas speculated that these talks likely focused on redemption models, with the SEC favoring cash creations over an in-kind structure.
Previously, crypto.news had reported on the SEC’s inclination towards cash-create redemptions. However, BlackRock, a prominent player in the finance industry, seemed to advocate for in-kind inclusions. Nevertheless, some firms, such as Hashdex and Valkyrie, have since updated their S-1 documents to include cash-only amendments for their spot Bitcoin ETFs.
Despite the discussions between the SEC and the ETF operators, the securities regulator has not revealed whether it intends to approve or reject the applications. However, experts believe there is a 90% chance of approval due to a departure from the SEC’s usual practice of delaying decisions and issuing denials with minimal feedback.
Grayscale’s recent court victory over the SEC is another factor contributing to the excitement surrounding Bitcoin ETFs. However, expert opinions suggest that the SEC may still reject Grayscale’s application.
The potential market impact of an SEC approval for any of the 13 spot Bitcoin ETF applications is yet to be determined. Michael Saylor, the CEO of MicroStrategy and a Bitcoin advocate, emphasized the significance of this decision, stating that it could be the most significant development in Wall Street’s history over the past 30 years.
However, not everyone shares the same level of optimism. Crypto trading firm QCP Capital and JPMorgan Chase hold contrasting views, suggesting that the hype surrounding Bitcoin ETFs may be exaggerated.
