U.S. Exchanges Propel Spot Bitcoin ETFs Towards SEC Approval

Major U.S. exchanges, including BlackRock and Grayscale, are filing amended documents, signaling confidence in the imminent approval of the first U.S. spot bitcoin exchange-traded funds (ETFs) by the SEC.
Anticipation is high as insiders suggest that multiple issuers may receive approval simultaneously, marking a significant step toward mainstream acceptance of cryptocurrencies.

In a significant stride towards mainstream acceptance, major U.S. exchanges are taking decisive steps, filing amended documents that indicate their confidence in the imminent approval of the first U.S. spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC).

The amended 19b-4 filings, submitted on behalf of industry giants like BlackRock, Grayscale, and Fidelity, complement last month’s amended S-1 filings. These revisions directly address the feedback received from the SEC, demonstrating the commitment of these exchanges to meet regulatory standards. The move suggests that more than a dozen applicants are positioning themselves for the potential simultaneous approval of the first spot bitcoin ETFs in the U.S.

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Insiders from leading issuers have conveyed to CoinDesk that they are cautiously optimistic about the anticipated approvals, with expectations running high for an announcement in the coming week. Despite filing amendments, these insiders emphasize that there are no guarantees, highlighting the complex regulatory landscape surrounding cryptocurrency investments.

The SEC

The final deadline for SEC action on at least one application, notably by Ark 21 Shares, looms on January 10. This deadline could signal a watershed moment, indicating the SEC’s comfort level with the pending applications. Industry experts speculate that multiple issuers might receive the green light simultaneously, ushering in a new era for crypto enthusiasts and investors alike.

Grayscale, a prominent player in the cryptocurrency investment space, views this filing as a pivotal step towards transforming its Bitcoin Trust (GBTC) into a spot Bitcoin ETF. Grayscale spokeswoman Jenn Rosenthal expressed the company’s commitment to collaboration with the SEC, affirming readiness to operate GBTC as an ETF upon regulatory approvals.

“At Grayscale, we continue to work collaboratively with the SEC, and we remain ready to operate GBTC as an ETF upon receipt of regulatory approvals.”
Grayscale spokeswoman Jenn Rosenthal stated

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Excitement escalated further with reports from Bloomberg suggesting that the SEC’s commissioners are expected to cast their votes on the exchange-rule filings in the upcoming week. This crucial juncture underscores the necessity for the SEC to greenlight both the 19b-4 filings and the S-1 filings before the much-anticipated ETFs can officially hit the market.

As the crypto community holds its breath, the potential approval of U.S. spot bitcoin ETFs signifies a milestone in the evolving relationship between traditional finance and the burgeoning digital asset space. If granted, these ETFs could pave the way for increased institutional involvement, making cryptocurrencies more accessible and integrated into traditional investment portfolios.