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The United States Securities and Exchange Commission (SEC) recently conducted a crucial joint conference call with Bitcoin ETF applicants, fueling speculations within the market that certain issuers might soon receive approval from the federal regulator. This move comes as the closest deadline for ETF applications facing the SEC approaches on January 10, 2024, signaling an imminent decision on the horizon.
Key Highlights:
- SEC holds joint conference with Bitcoin ETF applicants, signaling potential approvals pre-January 10, 2024.
- 7 out of 14 companies shift to a cash creation model for ETFs as per SEC guidance.
- Bitwise leads in adopting cash-only model; other major players like Grayscale, VanEck, WisdomTree, and Franklin Templeton remain uncertain.
- Analysts foresee a divide in ETF approvals, with a likelihood of some approvals between January 8-10, 2024.
SEC’s Guidance on Bitcoin ETF Cash Creation Model
Recent information hints at the SEC’s insistence on a cash creation model for upcoming Bitcoin ETFs, contrary to the current in-kind model outlined in applications. Among the 14 companies applying, 7 have swiftly transitioned to the cash-only structure.
Bitwise emerged as the pioneer in adopting the cash-only model, whereas entities like Grayscale, VanEck, WisdomTree, and Franklin Templeton maintain their dual creation types. Uncertainty looms over their potential shift to a cash-only framework.
Analyst Speculations on Bitcoin ETF Approval
Bloomberg analyst James Seyffart speculates on the impending deadline, suggesting a divide among ETF applicants. Some might lag behind, while others could secure SEC approval. Seyffart hints at the slim chance of approvals within 2023, anticipating a more probable issuance between January 8-10, 2024.
Also Read: Bitcoin ETF Battle: 3 Best Crypto Ads in 48 Hours
Blackrock’s Expected Role in Approvals
Fox Business correspondent Charles Gasparino previously indicated the SEC’s inclination to approve pending ETFs by January 10, 2024. Recent talks between SEC officials and ETF applicants, notably Blackrock and Grayscale, with multiple meetings, spark speculations on their potential as early recipients of ETF approval, contingent on Grayscale’s transition to a cash-only redemption model.
Conclusion
As discussions and speculations surrounding Bitcoin ETF approvals intensify, the joint conference by the SEC stands as a significant marker of potential regulatory movements. With indications of a shift toward a cash creation model and varying transitions among major ETF players, the market eagerly awaits the SEC’s decisions, potentially setting the stage for notable approvals and industry shifts in the coming days.
