Bitwise and BlackRock, two prominent asset managers, have recently submitted updated filings to securities regulators regarding their plans to offer a spot Bitcoin exchange-traded fund (ETF). These filings come as part of an ongoing effort by various asset managers to introduce Bitcoin ETFs to the market. This article will examine the recent developments and discuss the potential impact of these filings on the broader cryptocurrency landscape.
Bitwise filed an amendment to its S-1 registration form with the U.S. Securities and Exchange Commission (SEC) on December 4th. Similarly, BlackRock also submitted an amendment to its own S-1 form on the same day for its iShares Bitcoin Trust ETF. These filings represent the efforts of at least ten asset managers to offer spot Bitcoin ETFs.
Bloomberg ETF analyst Eric Balchunas believes that additional updated S-1 filings will surface in the coming week to address the issues raised in recent discussions between the SEC and ETF applicants. He also expresses optimism, suggesting a 90% chance that the SEC will approve one or multiple spot Bitcoin ETFs by January 10, 2024. While the SEC has already approved Bitcoin and Ethereum futures ETFs, it has not yet granted approval for a spot Bitcoin ETF in the United States.
Balchunas highlights the debate surrounding ETF creation methods, particularly the possibility of in-kind creations. It is rumored that only cash creations will be allowed initially, posing challenges for brokers to transact in Bitcoin due to existing regulations. However, if BlackRock succeeds in convincing the SEC, in-kind creations could become a viable option for many ETF issuers.
BlackRock’s latest amendment indicates a focus on cash and in-kind creation models, as evidenced by an attached presentation. As a result, the updated filing may introduce changes that directly address the discussions held with the SEC regarding these creation methods.
The submission of updated filings by Bitwise and BlackRock reflects the growing interest in launching Bitcoin ETFs and the determination of asset managers to navigate the regulatory landscape. If approved, these ETFs could significantly broaden access to Bitcoin for retail and institutional investors, further legitimizing the cryptocurrency.
The outcome of the ongoing discussions between the SEC and ETF applicants will shape the path forward for the cryptocurrency market. Approval of spot Bitcoin ETFs could pave the way for increased institutional participation and potentially drive the price of Bitcoin higher.
As the demand for Bitcoin continues to rise among investors, the introduction of ETFs offers a regulated investment vehicle that aligns with traditional market practices. By combining the convenience of ETFs with the potential upside of Bitcoin, asset managers hope to attract a wider range of investors seeking exposure to the cryptocurrency.
The updated filings submitted by Bitwise and BlackRock represent a significant step towards the introduction of Bitcoin ETFs in the United States. The ongoing discussions with the SEC and the potential approval of these ETFs could have a profound impact on the cryptocurrency market. Investors and industry participants eagerly await further developments in this rapidly evolving space.
