Bitcoin ETFs Could Launch as Soon as Next Week, Sources Say
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Bitcoin exchange-traded funds (ETFs) are poised to hit the market next week pending approval from the U.S. Securities and Exchange Commission (SEC), say industry insiders closely associated with the process.
Before these groundbreaking ETFs can commence trading, final regulatory filings are crucial for issuers and exchanges. Grayscale Investments, a frontrunner in Bitcoin ETF applications, is actively updating its Form 19b-4, a rule change proposal requiring SEC approval.
Concurrently, other applicants are diligently filing their conclusive S-1 forms, comprehensive documents revealing ETF specifics like fees, authorized participants, and related details.
Upon SEC approval of the 19b-4 forms and declaration of effectiveness for the S-1 forms, the Bitcoin ETFs could debut as soon as the following morning, according to an insider from one of the issuing entities.
SEC is giving final comments as we speak, then issuers will submit final 19b-4s and S-1s soon after. So I mean this is def as close to "done" as we've been but no official approval as far as I know.
— Eric Balchunas (@EricBalchunas) January 4, 2024
Will Bitcoin ETFs Be Approved or Not?
Sources hint that SEC approvals may materialize by mid-to-late next week, with potential launches on Thursday or Friday. However, a degree of uncertainty prevails, especially for ETFs with deadlines in March, such as BlackRock’s offering.
While the SEC has refrained from commenting on the ETF applications, Bloomberg Intelligence ETF analyst Eric Balchunas suggested via Twitter that the SEC is in the final stages of review, with issuers submitting their conclusive forms.
Several Bitcoin ETF applicants, including Fidelity, Grayscale, Ark Investments, Valkyrie, and VanEck, have preemptively filed Form 8-A, enabling them to trade on an exchange upon approval.
Notably, issuers have addressed SEC concerns, such as redemption models, authorized participants, and protocols for handling hard forks and airdrops. BlackRock and Valkyrie have enlisted Jane Street Capital and JP Morgan Securities as authorized participants, with Goldman Sachs expressing interest.
The imminent launch of Bitcoin ETFs is anticipated to catalyze crypto adoption and enhance the legitimacy of the digital asset. Additionally, it is expected to bring increased liquidity and transparency to the cryptocurrency market. Nevertheless, investors are cautioned to remain cognizant of the inherent risks and volatility associated with this burgeoning asset class.
