BlackRock, Grayscale, Fidelity, VanEck, Valkyrie, Hashdex, Franklin Templeton, Bitwise, Wisdomtree, ARK Invest, 21Shares, Invesco, and Galaxy have submitted updated 19b-4 forms to the SEC, reports The Block.
The latest amendments to the spot Bitcoin ETF applications bring issuers to the “home stretch,” noted Bloomberg analyst James Seyffart.
We’re not over the finish line yet. But we are damn close.
— James Seyffart (@JSeyff) January 5, 2024
“We need to see approval of these amended documents (expected next week). After that, the S-1 documents need to take effect (which could also happen next week). Then it will all be done,” he wrote.
Sources from Bloomberg analyst Eric Balchunas indicated that the final S-1 documents will take effect on the morning of Monday, January 8. According to him, the SEC is aiming for a launch by January 11.
Yeah it’s basically done. Latest I’m hearing (from multiple sources) that final S-1s are due 8am on Monday as SEC is trying to line everyone up for Jan 11th launch. That said, I still want to hear it from the SEC to call it official.
— Eric Balchunas (@EricBalchunas) January 5, 2024
According to Reuters, the Commission expects “minor changes” to the applications by the morning of January 8. Agency sources indicated that a vote on the approval of the instrument could take place on Wednesday, January 10.
Sources from CoinDesk within two issuers stated that their companies expect Bitcoin ETF approval next week. One noted that the latest amendments do not guarantee acceptance, but the firm remains optimistic.
VanEck promised that if the spot Bitcoin ETF is approved, it will direct 5% of the instrument’s profits to the Brink fund to support Bitcoin Core developers for at least 10 years. The company also made an initial donation of $10,000.
We’re not Bitcoin tourists at VanEck. We’re in it for the long haul. That’s why we made an initial $10k donation and signed a pledge to donate 5% of our Bitcoin ETF profits (if approved) to support Bitcoin Core devs @bitcoinbrink for at least 10 years. Your tireless dedication to…
— VanEck (@vaneck_us) January 5, 2024
“We’re not Bitcoin tourists, we’re here for the long haul. […] Your tireless dedication to decentralization and innovation is a vital part of the Bitcoin ecosystem. We support this,” the message reads.
Better Markets sent a letter to the SEC urging the rejection of Bitcoin ETF applications. The nonprofit organization called the potential approval of the instrument a “historic mistake” that would cause massive harm to investors.
The approval of spot bitcoin ETPs would be a historic mistake almost certainly leading to massive investor harm. The @SECGov must not subject investors to these risks. Read our new letter to the SEC: https://t.co/5eLMT6RHoP
— Better Markets (@BetterMarkets) January 5, 2024
In August 2023, Better Markets urged the SEC to reject Bitcoin ETF applications, citing “potential investor risks.”
Seyffart described a potential SEC refusal to launch the instrument as an “absolutely criminal move” considering the time and energy spent by issuers and Commission staff in recent months.
Would be an absolutely criminal move for this to happen considering the time effort and energy from all these issuers AND from the SEC staff over the last few months https://t.co/QZR4pqcyga
— James Seyffart (@JSeyff) January 5, 2024
Analysts have suggested that Bitcoin ETF approval could raise the asset’s price to $54,000. However, Morgan Creek Digital co-founder Anthony Pompliano warned that the instrument’s launch would not double Bitcoin’s price overnight.
Conversely, JAN3 CEO Samson Mow predicted that digital gold could rise to $1 million within a few “days or weeks” following ETF approval.
On August 31, the SEC postponed its decision on several Bitcoin funds until at least mid-October. At the end of September, the agency deferred the review of applications to January 2024.