spot_imgspot_imgspot_img

Spot Bitcoin ETF Applicants May Face Another Hurdle from the SEC!

  • In the past few weeks, several companies, including BlackRock and ARK, have amended their S-1 applications with the SEC to become among the first approved issuers of spot Bitcoin ETFs.
  • According to Balchunas, issuers will likely have to clearly authorize participant parameters in the S-1 form before the commission evaluates it.
  • The Authorized Participant requirement seems to emphasize who can and cannot manage the SEC’s spot Bitcoin ETF.

Can the U.S. Securities and Exchange Commission (SEC) pose obstacles for spot Bitcoin ETF applicants? An ETF analyst explained!

Bitcoin ETF Applicants Could Encounter Obstacles

Bitcoin-BTC

Reports suggest that the U.S. Securities and Exchange Commission (SEC) is gearing up to announce the first wave of issuers of spot Bitcoin exchange-traded funds (ETFs) in early January 2024. While several companies, including BlackRock and ARK, have amended their S-1 applications with the SEC in the past few weeks to become among the first approved issuers of spot Bitcoin ETFs, it seems that applicants will need to overcome another hurdle before approval.

In the past few weeks, several companies, including BlackRock and ARK, have amended their S-1 applications with the SEC to become among the first approved issuers of spot Bitcoin ETFs. BlackRock and ARK, complying with the alleged preference of the SEC, have inclined towards using a cash creation and redemption model for spot Bitcoin ETFs instead of the in-kind model they previously used in S-1 filings.

However, according to Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, the SEC’s decision does not seem finalized yet. Balchunas suggests that issuers will likely have to clearly authorize participant parameters in the S-1 form before the commission evaluates it. Going further, he speculates that to approve the spot Bitcoin ETF application, the SEC might require issuers to provide an Authorized Participant (AP) agreement.

Balchunas explained, “Latest snapshot of ETF Cointucky Derby with the new column, SEC asked for the name of the AP (who is also an underwriter) in the next S-1 update (coming in the next 10 days). This is not an easy last step and could keep some away from the starting gate. AP agreement + cash create = approval.” The Authorized Participant requirement seems to emphasize who can and cannot manage the SEC’s spot Bitcoin ETF.

But what does an Authorized Participant mean?

An Authorized Participant could be a financial institution, such as a bank, responsible for creating and redeeming ETF shares on the primary market. This role involves adjusting the number of circulating ETF shares and maintaining the price of an ETF in line with the underlying security value, in this case, Bitcoin.

A spot Bitcoin ETF in the U.S. is one of the most anticipated and sought-after crypto investment vehicles in the country. However, the SEC has remained consistent in its stance that the product involves too much risk. Recently, a report emerged suggesting that the in-kind model might be used for money laundering, leading the SEC to prefer the cash creation and redemption model for spot Bitcoin ETFs.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news

spot_imgspot_imgspot_imgspot_img

Latest News

BlackRock’s iShares Bitcoin Trust Skyrockets to $10 Billion AUM, Marking Historic ETF Milestone

This article explores the remarkable achievement of BlackRock's iShares Bitcoin Trust (IBIT) reaching $10 billion in assets under management (AUM), reflecting growing institutional interest and trust in cryptocurrency investments.

Bitcoin Futures Open Interest Hits Record High, Signaling Strong Market Sentiment

This article delves into the recent surge in Bitcoin futures open interest, showcasing increased market activity and the implications of speculative buying on price movements.

Bitcoin Enters Bull Market with Predictions of 10-Month ‘Face Melting FOMO,’ Says Analyst PlanB

This article explores the latest Bitcoin bull market forecast by analyst PlanB, the implications of the stock-to-flow model, and the role of new Bitcoin ETFs in shaping investor interest and market dynamics.

Bitcoin Eyes $70,000 Milestone: Bloomberg’s McGlone Predicts Shift from Gold to Crypto

As Bitcoin approaches the $70,000 mark, Bloomberg's Mike McGlone forecasts a pivotal transition in investment from gold to cryptocurrency, signaling a transformative phase in asset allocation.

Can XRP Price Reach $1? Noted Analyst Reveals Prediction!

Ripple's XRP token is trading below $0.60; what will be the next target for the XRP token? Current predictions!
spot_imgspot_imgspot_imgspot_img

PRO Analysis

Ethereum Breaks $3K as Rally Continues: What’s Next for ETH?

This article dives into Ethereum's recent surge past $3,000, analyzing the technical indicators and market dynamics driving its ascent and future prospects.

Will Bitcoin Rise To $50,000? Current BTC Analysis

Bitcoin is trading at $48,400 and may rise to $50,777 if it closes above $48,200. However, caution is advised in the range of $50,777 - $52,000. Corrections are common in the crypto market, so careful consideration is necessary before spot investments.

Where is the Solana Rise Target? Current SOL Analysis!

Solana is trading near the $108 resistance on the 8-hour chart, with a potential target of $111.84 if it surpasses this level. However, caution is advised in the $111.84 - $117.20 resistance range on the 6-hour timeframe.

Medium Term Ethereum Technical Analysis! What Awaits Its Investors?

When examining the medium-term technical chart of Ethereum, strong buying pressure is observed, pushing the price up from the $2139 support to the $2350 region. However, for the price to sustain its upward movement, it needs to surpass the $2407 resistance.

Can Bitcoin Fall To $35,000 Levels? Current BTC Analysis

When examining Bitcoin's 5-day technical chart, the analysis from January 18 is ongoing, indicating a continued downward movement from the $48,189 level. Bitcoin needs to close 5-day candles above the $44,200 resistance to gain momentum for an upward trend. 
Celal Mutlu
Celal Mutluhttps://coinotag.com/
Celal Mutlu is a young Satoshi reflection at the age of 21. His favorite characters are CZ and Vitalik, and he has a great sense of humor. Celal is a keen follower of developments in the world of cryptocurrency and keeps up with the latest news and trends.
spot_imgspot_imgspot_imgspot_img

BlackRock’s iShares Bitcoin Trust Skyrockets to $10 Billion AUM, Marking Historic ETF Milestone

This article explores the remarkable achievement of BlackRock's iShares Bitcoin Trust (IBIT) reaching $10 billion in assets under management (AUM), reflecting growing institutional interest and trust in cryptocurrency investments.

Bitcoin Futures Open Interest Hits Record High, Signaling Strong Market Sentiment

This article delves into the recent surge in Bitcoin futures open interest, showcasing increased market activity and the implications of speculative buying on price movements.

Bitcoin Enters Bull Market with Predictions of 10-Month ‘Face Melting FOMO,’ Says Analyst PlanB

This article explores the latest Bitcoin bull market forecast by analyst PlanB, the implications of the stock-to-flow model, and the role of new Bitcoin ETFs in shaping investor interest and market dynamics.