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In recent days, four prominent Bitcoin (BTC) exchange-traded fund (ETF) issuers have engaged in meetings with the Securities and Exchange Commission (SEC).
According to Bloomberg ETF analyst James Seyffart, these issuers have been actively discussing their Bitcoin-related filings with the SEC, bringing increased hope for the approval of spot Bitcoin ETFs soon.
Nothing groundbreaking to report but 4 different issuers have met with the SEC regarding their #Bitcoin ETF filings in last few days. @BlackRock met with them yesterday for the third time in as many weeks. While @Grayscale, Franklin, and @Fidelity each had meetings last week pic.twitter.com/5gwBk83m0o
— James Seyffart (@JSeyff) December 12, 2023
Among the companies involved, BlackRock stands out as it met with federal regulators for the third time in as many weeks on December 12.
Grayscale, Franklin, and Fidelity also had meetings with the SEC last week, indicating the growing interest and efforts surrounding Bitcoin ETF applications.
BlackRock recently made amendments to its spot Bitcoin ETF application, aiming to facilitate participation from large banks.
The updated application introduced new shares in the fund that can be purchased with cash, expanding the options beyond solely using cryptocurrencies.
The SEC is expected to make a decision on BlackRock’s application by January 15, with the final deadline set for March 15.
Seyffart observed that both the Division of Trading and Markets and the Division of Corporate Finance were present during these meetings, as they hold the key to approving or denying the 19b-4’s and S-1’s.
BlackRock’s Repeated Meetings with SEC Spark Optimism
In a recent post on X (formerly Twitter), ETF expert Eric Balchunas highlighted BlackRock’s repeated meetings with the SEC.
He said the fact that Rachel Aquirre, head of all US iShares, was present in the recent meeting is particularly significant.
“How come they don’t invite market makers to these things?” he said.
Likewise, Nate Geraci, President of ETF Store, shared insights from his conversation with Valkyrie’s Steven McClurg, who expressed optimism about the progress made in the spot ETF race.
According to McClurg, the SEC has no major concerns apart from issues related to share creation and redemption, and the Valkyrie products are ready for launch with the necessary ETF infrastructure in place.
Geraci noted that the potential approval date could be anytime after January 2, while analysts, including Seyffart and Balchunas, have identified January 10 as a possible date for batch approvals.
SEC Expected to Approve Spot Bitcoin ETFs
The SEC has historically denied or delayed spotcoin ETFs due to concerns over market manipulation and investor protection.
However, following a landmark lawsuit loss to Grayscale Investments in August, the agency began collaborating more closely with a dozen firms to explore the possibility of bringing such funds to the market.
Many industry participants, including Cathie Wood of ARK Invest, believe that the SEC will approve multiple applications simultaneously to prevent any single firm from gaining a first-mover advantage.
Analysts at financial services firm Cantor Fitzgerald also believe the long-awaited spot BTC ETF is inching closer to reality.
The company, known for its prime brokerage and investment banking services, has grown confident in the approval of applications from asset managers seeking to launch a spot ETF for Bitcoin.
Currently, the SEC is evaluating 13 applications for spot BTC ETFs.
However, the most recent application by Swiss-based Pando Asset, submitted just two days ago, is unlikely to be considered alongside the earlier submissions.
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