The U.S. Securities and Exchange Commission (SEC) is currently under scrutiny as it reviews amendments to the form S-1 filings for the first-ever spot bitcoin exchange-traded funds (ETFs). Amidst this, Fox Business analyst Charles Gasparino has highlighted a notable “silence” from the SEC, as sources at BlackRock report a lack of communication, suggesting a backlog in the approval process due to extensive paperwork.
The industry is on tenterhooks as it awaits the SEC’s decision on major asset management firms. Companies like BlackRock, Invesco, Valkyrie, VanEck, Wisdomtree, Fidelity, and ARK 21Shares are all competing for the coveted approval of their spot bitcoin ETFs. The filings, which were due before the December 29, 2023, deadline, are critical in determining the future landscape of cryptocurrency investment in the U.S.
Fox Business journalist Eleanor Terrett further reported that the SEC has yet to complete its review of these changes. This step is crucial before the SEC can provide comments on the form S-1s, guiding the final adjustments necessary for the ETFs.
Drawing from the SEC’s previous actions, such as the approval of ETH futures in October 2023, the review of the form S-1s is expected to continue until early next week, around January 8, 2024. Consequently, the industry is looking towards January 9 or 10, 2024, as the likely window for the SEC’s approval announcement. Terrett also noted that the SEC staff had been off since December 29, 2023, contributing to the tight schedule for the approval process.
In the background, firms are positioning themselves with competitive fee structures, with Valkyrie and Ark/21shares announcing a 0.80% management fee and Fidelity proposing a lower 0.39% fee for its Wise Origin Bitcoin Fund. Blackrock has also revealed plans to seed its ETF with $10 million, naming JPMorgan as a lead authorized participant.
As the SEC continues its review, the crypto community is on its heels, anticipating that the agency’s feedback will shape the future of the broader cryptocurrency landscape. The next few days are expected to be pivotal, with the potential to set a new course for bitcoin ETFs and the wider cryptocurrency sector.
