On the final day for the United States Securities and Exchange Commission (SEC) to consider applications in January 2024, asset managers BlackRock, Valkyrie, and Van Eck submitted amended S-1 forms for their proposed spot Bitcoin exchange-traded funds (ETFs). The submissions are revisions of their earlier applications, marking a crucial step in the race to launch the first U.S.-listed Bitcoin ETF.
Key Points:
Amended S-1 Filings: BlackRock, Valkyrie, and Van Eck submitted amended S-1 forms to the SEC on December 29, making adjustments to their previous applications for spot Bitcoin ETFs. These amended filings are a response to the SEC's considerations and aim to address regulatory requirements.
Cash-Only Model: Van Eck's revised application emphasizes the use of a cash-only model for the creation and redemption of shares, aligning with the SEC's preference. The inclusion of cash settlements is seen as a positive move by the regulatory body.
Authorized Participants: BlackRock's updated filing identifies Jane Street and JPMorgan Securities as "authorized participants" in its proposed spot Bitcoin ETF application. The inclusion of authorized participants is crucial for the creation and redemption processes in ETFs.
SEC Decision Deadline: Analysts, including Bloomberg ETF analyst Eric Balchunas, anticipate that the SEC will make decisions on the outstanding spot Bitcoin ETF applications by January 10, 2024. If approved, trading is likely to commence shortly thereafter.
Valkyrie's Appointments: Valkyrie, in its amended S-1, appointed Jane Street Capital and Cantor Fitzgerald as authorized participants. StoneX Financial has been selected as the lead market maker for Valkyrie's proposed spot Bitcoin ETF.
Competitive Landscape: Multiple asset managers, including Grayscale, Bitwise, WisdomTree, Invesco, Fidelity, ARK Invest, Franklin, and others, have submitted S-1 applications for spot Bitcoin ETFs. The competition among these firms underscores the significance of being the first to secure SEC approval.
Implications and Outlook: The submission of amended S-1 forms by BlackRock, Valkyrie, and Van Eck signals their commitment to meeting SEC requirements and securing approval for spot Bitcoin ETFs. The cash-only model and the selection of authorized participants are key elements influencing the likelihood of approval. The anticipated decision by the SEC in January 2024 will have a substantial impact on the cryptocurrency and ETF markets.
Conclusion: As the race for the first U.S. spot in the Bitcoin ETF intensifies, BlackRock, Valkyrie, and Van Eck have taken a significant step by submitting amended proposals. The outcome of the SEC's deliberations will not only shape the future of these specific ETFs but will also set a precedent for the regulatory landscape surrounding cryptocurrency-based financial products in the United States.
(DEREK ANDERSEN, COINTELEGRAPH, 2023)