HomeBlockchain & CryptoSpot Bitcoin ETFs Heat Up Markets

Spot Bitcoin ETFs Heat Up Markets

The long-awaited arrival of spot Bitcoin exchange-traded funds (ETFs) in the U.S. may be just days away, with issuers scrambling to the final steps of paperwork and the SEC poised to deliver a verdict between January 8 and 10, 2024.

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Spot Bitcoin exchange-traded funds (ETFs) could be trading as early as this week if the Securities and Exchange Commission (SEC) approves the filings. This has sent a wave of excitement through the cryptocurrency community, eagerly awaiting the first regulated Bitcoin investment product in the U.S. market.

In the last two days, multiple spot bitcoin ETF issuers have submitted Form 8-As, including Fidelity, Grayscale, Ark Investments, Valkyrie, and VanEck. This move signifies registration, which allows issuers to trade on an exchange once the product has been approved. Over the past few months, issuers have been working closely with the SEC to address any remaining concerns. Three key issues have been hashed out: redemption models, authorized participants, and how to manage hard forks and airdrops. Last week, BlackRock named Jane Street Capital and JP Morgan Securities as authorized participants. While Valkyrie has chosen Jane Street Capital and Cantor Fitzgerald. Goldman Sachs is also reportedly interested in getting involved.

Over the next few business days, issuers like Grayscale Investments need to file Form 19b-4s. The prospective spot bitcoin ETF issuers will also need to file final S-1 forms to lay out the fees, name the authorized participants, and remove any outstanding questions. The SEC will then need to approve both forms to become effective. Once both of these steps are completed, trading can begin.

The SEC is widely expected to announce its decision on whether to approve or reject Bitcoin ETFs between January 8 and 10, 2024. Issuers and regulators have met repeatedly in the lead-up to this deadline. Approving Spot Bitcoin ETFs would be a major milestone for the cryptocurrency industry. It would provide investors with a safe and easy way to gain exposure to Bitcoin, and it could also lead to increased institutional investment in the asset class.

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