Spot Bitcoin ETF Applicants in Meeting Mode with the SEC
The US Securities and Exchange Commission (SEC) is conducting meetings with the applicants of the Spot Bitcoin Exchange-traded Fund (ETF) regarding their applications. “The SEC is busier than Santa’s elves,” stated a Bloomberg ETF analyst, mentioning that the world’s largest asset manager, Blackrock, has met with the SEC three times recently.
Focus of the Meeting on the 'In-Kind Creation vs. Cash Creation' Model
The US Securities and Exchange Commission (SEC) is holding several meetings with the four applicants regarding their Spot Bitcoin Exchange-traded Fund (ETF) applications.
James Seyffart, a Bloomberg analyst, shared on social media X on Tuesday that Blackrock, the world’s largest asset manager, met the SEC on Monday for the third time in recent weeks to discuss its Spot Bitcoin ETF application. He shared that the SEC also held meetings with Fidelity Investments, Franklin Templeton, and Grayscale Investments. The SEC website has posted the meeting memoranda with Grayscale and Franklin Templeton meeting with the SEC on December 8, Fidelity Investments on December 7, and Blackrock’s latest meeting with the SEC on December 11.
Senior Bloomberg ETF analyst Eric Balchunas posted on X:
"The SEC is busier than Santa’s elves. Blackrock’s third meeting with them yesterday is the most notable, IMO, as everyone is waiting to see if they can convince the SEC to allow in-kind creations in the first run of approvals."
“As you can see from the screenshots, both the [SEC] Division of Trading & Markets and the Division of Corporate Finance were present at these meetings. Those are the two divisions that will ultimately decide if and when the 19b-4’s and S-1’s will be approved or denied,” Seyffart noted.
The applicants of Spot Bitcoin ETF have filed Forms 19b-4 and S-1 with the SEC. Form 19b-4 is used by covered self-regulatory organizations (SROs) to record a rule change with the SEC, while S-1 is a statement for registration.
The focus of the meetings of the Spot Bitcoin ETF applicants with the SEC is largely on the use of the in-kind creation model instead of the cash creation model for their Spot Bitcoin ETFs. The SEC favors the cash model, while the Spot Bitcoin ETF applicants are pushing for an in-kind creation model. Blackrock has recently proposed a revised in-kind model to address the concerns of the regulator. Blackrock seems to have addressed the potential classification of bitcoin as a security by the SEC in its latest Spot Bitcoin ETF filing update.
Bloomberg Predicts Spot Bitcoin ETF Approval in January
Bloomberg has given an optimistic prediction of the SEC approving Spot Bitcoin ETFs by January 10, 2024. There are currently 13 applications in consideration before the SEC. Anthony Scaramucci, founder of Skybridge Capital, has predicted a massive capital inflow from Wall Street into BTC following Spot Bitcoin ETF approvals, while Mike Novogratz, CEO of Galaxy Digital, expects the price of the cryptocurrency to rise “significantly higher.”
What is your take on these Spot Bitcoin ETF applicants meeting with the SEC? Please share your thoughts and opinions in the comments section below.
0 Comments