Cryptocurrency investors and asset managers are eagerly awaiting word on what decision the Securities and Exchange Commission will make in its ongoing review of a dozen applications for spot Bitcoin ETFs, with some expecting a decision as early as this week. there is. Enthusiasts expect the approval will add billions of dollars in value to the cryptocurrency sector, but a lot still needs to be done before that becomes a reality.
A decision is expected in the coming days, as the SEC has a Jan. 10 deadline to respond to Cathie Wood’s ARK Investment and 21Shares, the first of the latest wave of filings. But some analysts have pointed out that the SEC has broad powers in the process, which could force it to try again and delay the decision.
But last week ended on an optimistic note. The stock exchanges rushed to file a new Form 19b-4 for each proposed fund. The market will be eagerly watching the SEC website this week for news of these rule submission forms, and overall approval will likely begin there first.
In a parallel process, the issuer is expected to file a revised S-1 registration form for the proposed Bitcoin ETF, setting out terms for fees, naming authorized participants and removing items in parentheses.
Dual approval process
The approval process is a two-part process. First, the Form 19b-4 must be approved, and then the Form S-1 must become “valid.” Once these two conditions are met, the deal can begin, and some asset managers say it’s already ready once approval comes.
Representatives of five financial firms told Reuters they had discussed final S-1 changes with regulators and expected to submit and receive approval of amendments by Tuesday or Wednesday of next week. the week.
What is not yet known is what kind of decision the SEC will issue. Regulators may decide to make decisions on all reports at the same time, or they may approve some and reject or delay others.
Any decision may be announced by the SEC or directly by the asset manager. It is also available through EDGAR, the SEC’s electronic database. “We do not comment on individual filings,” an SEC spokesperson previously told The Block in an emailed response to questions. “Broadly speaking, once the Commission declares a registration statement effective, this will be reflected in EDGAR. All Commission 19b-4 orders will be posted on our website and then published in the Federal Register.”
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