Recent interactions between major financial institutions and the U.S. Securities and Exchange Commission (SEC) have signaled a potential shift in the landscape of Bitcoin Exchange-Traded Funds (ETFs). Bloomberg ETF analyst James Seyffart reported that four issuers, including BlackRock, Grayscale, Franklin, and Fidelity, have held meetings with the SEC regarding their Bitcoin ETF filings. BlackRock, notably, has met with the SEC three times in recent weeks.
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
Seyffart’s tweets further revealed that both the Division of Trading & Markets and the Division of Corporate Finance were present at these meetings. These divisions are critical in the decision-making process for the approval or denial of the 19b-4’s and S-1’s filings, indicating the seriousness of these discussions.
Further, responding to Seyffart, cryptocurrency personality Travis Kling inquired about the timeline for potential ETF approvals. Seyffart suggested the second week of January as a plausible timeframe for the 19b-4 approvals. However, he noted that even if the SEC approves these applications, the actual listing of the investment products might experience delays.
This cautious optimism is mirrored in the recent actions of BlackRock, which filed an amended S-1 filing with the SEC for its proposed spot Bitcoin ETF. This move, along with a similar one by Bitwise, suggests ongoing discussions with the regulator. Seyffart commented on the flurry of activity in the ETF space, indicating that both the SEC and issuers are actively working to resolve outstanding issues.
The updated BlackRock filing included new language addressing efforts to monitor unusual price movements and enhanced anti-money laundering compliance. It also featured an audited statement from PricewaterhouseCoopers, emphasizing the rigorous approach taken by the trust administrator in engaging with third-party service providers.
Amid these developments, Bitcoin’s market value has seen a notable increase, surging 20.6% over the past month and currently trading at just under $42,000. This surge is partly fueled by speculation that the SEC might be nearing a decision to approve a spot Bitcoin fund, a milestone eagerly anticipated by the cryptocurrency community.
