The January 10ththe SEC will have to decide and validate or not ETF spot on Bitcoin d’ARK Investment and 21Shares. For Grayscaleon regulator would be decided to approve simultaneously several ETF and to create a new market.
The great beginning of ETF Bitcoin spot is it imminent? That’s what supporters of these financial products are saying. A major deadline awaits the SEC on January 10. The US regulator will then have to rule on the applications filed by ARK Investment and 21Shares.
The two companies were the first to file applications with the SEC. However, the regulator may take advantage of this meeting to approve other applications, including that of BlackRock. The asset manager revised its proposal on December 18.
BlackRock adjusts its ETF to earn points
In an effort to overcome regulatory hurdles, BlackRock has incorporated a cash creation and redemption mechanism into its ETF, a model favored by the stock market watchdog. Is this enough to win the day?
More than 10 players are candidates for a Bitcoin cash ETF. According to Grayscale’s CEO, as well as other financial operators, the SEC is expected to give the green light to several of these financial products simultaneously.
I think the SEC needs to create a level playing field, and that’s what it’s doing,” says Michael Sonnenshein on Bloomberg.
The first entrant will benefit from an undeniable competitive advantage, as demonstrated by the case of futures ETFs.
Grayscale advocates a go on several ETFs
Grayscale, which won a legal battle with the SEC to turn its Bitcoin Trust into an ETF, doesn’t intend to be left by the wayside.
We have publicly advocated that when the Commission is ready to give the required approvals for cash products to come to market, it should be done all at once – issuers who are operationally ready to launch their products should do so all at once,” argues its CEO.
On Ethereum, on the other hand, Grayscale still has a long way to go. The fund manager is seeking a listing for the Grayscale Ethereum Futures Trust ETF. On December 18, the SEC deferred its decision on the fund and that of Hashdex, as permitted by law.
A new channel for traditional capital
Ethereum ETFs will have to wait. For Bitcoin, the end is nigh. This is what analyst Vetle Lunde of K33 Research suggests.
This decisive date has been the focus of bitcoin investors’ attention since October and will be extremely important to follow,” he warns of January 10, 2024.
Institutional investors will have to be patient. The first ETF issuers have been in the running since 2013. But since the entry of traditional financial heavyweights such as BlackRock, Invesco and Fidelity, a favorable outcome has never seemed so close.
For Dan Morehead, founder and managing partner of Pantera Capital, a spot Bitcoin ETF can be compared to similar gold products launched in 2003 and 2004.
This opens up a new channel for traditional capital, which might not have participated before, to flock to digital gold.”
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