In the latest development, about a dozen Bitcoin spot ETF (exchange-traded fund) applicants have submitted 19b-4 amendment documents. These submissions come with the deadline for the United States Securities and Exchange Commission (SEC) to approve the investment product just days away.
Will Bitcoin Spot ETF Be Approved Next Week?
On Friday, January 5, 11 asset management firms looking to offer Bitcoin spot ETF in the US filed 19b-4 amendments for their applications. These companies include BlackRock, Grayscale, Valkyrie, ARK 21shares, Hashdex, Biteise, Invesco Galaxy, Fidelity, VanEck, WisdomTree, and Franklin Templeton.
These submissions are one of the defining last steps in the SEC approval process for an exchange-traded fund. However, S-1 filings still need to be completed and approved for exchanges in the United States to begin listing crypto ETF products.
Bloomberg analyst Eric Balchunas, in a post on X, suggested that the Bitcoin spot ETF will receive the SEC’s approval next week. Citing multiple anonymous sources, the approval process for the investment vehicle is basically complete, with the final S-1 filings due next Monday, January 8.
Balchunas said:
Yeah it’s basically done. Latest I’m hearing (from multiple sources) is that final S-1s are due 8 am on Monday as the SEC is trying to line everyone up for the Jan 11th launch. That said, I still want to hear it from the SEC to call it official.
James Seyffart, another Bloomberg analyst, added further optimism to the SEC greenlighting a Bitcoin spot ETF by next week. The analyst said in a post on the X platform:
We need to see approvals on these amended filings (which should come next week). And then we need the S-1 documents to go effective (which could also happen next week). Then it’s a done deal.
While these experts are highly positive about the chances of a Bitcoin ETF approval in early 2024, US financial advisors do not seem confident that the SEC will authorize the product this year. A recent Bitwise survey found that only 39% of advisors believe that spot BTC ETF will be approved in 2024.
BlackRock Has $2 Billion Of Capital Lined Up For Bitcoin ETF
There are beliefs that the approval of a Bitcoin spot ETF will lead to increased demand for and institutional inflow into the premier cryptocurrency. BlackRock, the world’s largest asset manager, seems to be leading the charge.
VanEck's Matthew Sigel just said he's heard from a well placed source that BlackRock has $2 billion of capital lined up from existing bitcoin holders that want to rotate into spot bitcoin ETFs in week one. If it’s true, $2b would blow away all first day/week volume/aum records…
— Wu Blockchain (@WuBlockchain) January 6, 2024
According to VanEck’s head of digital assets research, Matthew Sigel, BlackRock has $2 billion of capital lined up from existing Bitcoin holders who want to “rotate” into Bitcoin spot ETFs in the first week. Eric Balchunas noted that “if it’s true, $2b would blow away all first day/week volume/aum records for an ETF.”
As of this writing, Bitcoin is valued at $43,800, reflecting a 0.3% change in the past day.
Bitcoin price looks to break above $44,000 on the daily timeframe | Source: BTCUSDT chart on TradingView
