Bitcoin ETF Applications Updated One Day Before Deadline

In a discussion that lasted longer than usual, the US Securities and Exchange Commission (SEC) once again reserved comments on recent updates to forms submitted by companies seeking permission to launch a Bitcoin (BTC) ETF.

Let us remind you that yesterday, as reported by CriptoNoticias, 7 companies presented updates to your Forms S-1 and S-3 related to the service fees that these ETFs will charge their clients.

Bloomberg Intelligence hedge fund specialist James Seyffarth confirmed What The SEC has left comments on these forms. and said that today, January 9, then new amendments should be presented.

This is what happens. At the time of this publication The amendments were submitted by BlackRock, VanEck, ARK, Grayscale, Fidelity, Widsom Tree, Valkyrie, Invesco, Franklin Templeton and Bitwise.

The forms show changes that include warning investors about potential liquidity issues and counterparty insolvency risks (facts that make it clear that owning shares of a Bitcoin ETF is not the same as actually owning Bitcoin).

You can read, for example, in BlackRock’s ETF app:

“If the custodian agreement, lead executing agent agreement, authorized participant agreement, or bitcoin business counterparty agreement is terminated or the Bitcoin custodian, lead executing agent, authorized participant, or bitcoin bitcoin business counterparty fails to provide required services, the Trustee may may be required to find and appoint a new custodian, executor, authorized participant or bitcoin trading counterparty, which may jeopardize the Trust’s custody of bitcoins, the Trust’s ability to create and redeem Shares, and the Trustee’s ability to continue as a business may be undermined.

Excerpt from BlackRock ETF Application, i SHARES® BITCOIN TRUST

Of these amendments, Seiffart says, “I don’t think it’s necessarily a sign of delay.” And this shouldn’t happen, because The SEC has until tomorrow, January 10, 2024, to publicly rule in favor or against the ETF jointly proposed by ARK and 21Shares.. The SEC could also approve multiple filings on the same day, which would make sense to avoid favoring any one company over others.

Seyffart expressed surprise at this unusual occurrence:

“It is almost unheard of to submit a document to the SEC in the morning and receive comments the same day. “If they wanted to delay, the broadcasters would not have received any comment tonight.”

James Seyffarth, investment funds specialist.

While all this is happening, a day after the possible approval of spot Bitcoin ETFs in the United States, the price of the digital currency remains near its highest level in nearly 2 years. At the time of publication, as can be seen from the CriptoNoticias price calculator, each BTC is trading at $46,560.

Updates from 01/09/2024:
14:00 (UTC): ARK has also reportedly amended its application.
– 14:27 (UTC): Grayscale has also reportedly amended its application.
– 15:20 (UTC) Fidelity, Bitwise, Franklin Templeton, Valkyrie, Widsom Tree and Invesco also reportedly submitted amendments to their application.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button