Prospective spot bitcoin ETF issuers are gearing up to begin trading as early as next week pending the approval of the necessary filings by the Securities and Exchange Commission (SEC). Three sources involved in the process have indicated that issuers and exchanges are making final preparations to facilitate this milestone in the crypto industry.
In the coming business days, Grayscale Investments is expected to file an amended form 19b-4, updating the paperwork initially submitted several months ago. This essential step is crucial to kickstart the process and is anticipated to be reflected on the NYSE website’s rulemaking section.
In addition to the 19b-4 filings, the prospective spot bitcoin ETF issuers will also need to file final S-1 forms, outlining critical details such as fees, authorized participants, and the removal of any unnecessary items. Upon approval of the outstanding 19b-4 forms and the effectiveness of the S-1 forms, trading for the spot bitcoin ETFs could commence, with approvals not necessarily simultaneous.
According to insights from one prospective issuer, trading may potentially begin by the middle or the latter part of next week, with an optimistic estimate for Thursday or Friday. However, certain uncertainties persist, especially considering that some spot bitcoin ETFs, such as BlackRock’s, have a timeline extending into March.
Notably, multiple prospective spot bitcoin ETF issuers have recently submitted Form 8-As, further advancing the process. Prominent entities such as Fidelity, Grayscale, and VanEck have taken this step, indicating progress toward trading on an exchange once the products are approved.
Despite the progress, concerns remain, with the potential for further delays in launching a spot bitcoin ETF. According to James Angel, an associate professor at Georgetown University, the SEC holds the power to influence the timeline by requesting additional actions from issuers. The agency’s influence could potentially result in protracted delays, underscoring the unpredictability of the situation.
In conclusion, the impending launch of a spot bitcoin ETF signals a significant development in the crypto and NFT industry, with various stakeholders navigating the regulatory landscape to bring this innovative investment vehicle to market. The collaboration between issuers, exchanges, and regulators underscores the ongoing efforts to establish a robust and regulated ecosystem for cryptocurrency investments.
(With additional reporting assistance from Sarah Wynn.)
