Next Steps for the Bitcoin ETF

The final stages of preparation for the anticipated launch of a spot Bitcoin exchange-traded fund (ETF) on Wall Street are underway. Bloomberg analyst Eric Balchunas reported that asset managers are expected to complete their final revisions by the morning of January 8. These revisions, to be submitted through S-1 filings no later than 8:00 am Eastern Time (13:00 UTC), will disclose remaining details such as fees and tickers, which have not yet been revealed by some, including BlackRock.

Exchanges planning to list the crypto funds have submitted their 19-b4 amendment forms after the markets closed on January 5. These forms, along with the S-1 filings, represent the last steps before a decision is expected from the U.S. Securities and Exchange Commission (SEC), as explained by Balchunas.

The SEC’s decision-making process could next involve a vote by its commissioners. However, nothing is scheduled on the commission’s public agenda before January 11, the expected debut date of the ETFs. Balchunas mentioned that the SEC might choose not to hold a vote and instead utilize its delegated authority policy, a departure from past practices when they denied applications without voting.

Balchunas anticipates that most applications submitted by the December 29 deadline will likely be approved next week. He also noted that Grayscale, which aims to convert its Grayscale Bitcoin Trust into a listed BTC ETF, might receive its decision following the initial approvals.

Regarding a recent letter from Better Markets, which called the approval of ETFs a “historic mistake,” Balchunas dismissed the concerns as the “last gasp of an angry crypto hater.” He argued that the ETFs wouldn’t be introducing crypto to the market for the first time, as cryptocurrencies are already widely accessible. Therefore, he believes the letter doesn’t carry much weight.

For a decade, the SEC has consistently denied approval for a spot BTC ETF, mainly due to concerns over market manipulation. However, according to Bloomberg’s James Seyffart, the current situation suggests that the regulator might be feeling pressured to approve these ETFs.