Bitcoin ETF Trends to Watch
Bloomberg’s senior ETF analysts Eric Balchunas and James Seyffart have been actively discussing the SEC’s decision on the numerous spot Bitcoin ETF applications, predicting a 90% chance of approval for the new product.
Seyffart recently announced that the SEC has a limited window to approve or reject multiple Bitcoin spot ETFs in the United States, between January 5 and 10, 2024. This means that the approval could come before that time or within the week.
In response to Seyffart’s announcement, Balchunas encouraged the public to watch out for updated S-1 filing amendments this week. He also confirmed that there would be no updated 19b-4s as the regulator has requested potential Bitcoin ETF issuers to submit them offline. One of the latest firms to amend its 19b-4 filing with the SEC was crypto asset management firm Hashdex.
LATEST: Look for updated S-1 filings this week (which answer round two comments from SEC which I heard were exhaustive and possibly final). But.. we won’t see updated 19b-4s because SEC asked issuers to send back offline for now. Those probably will be re-filed just before approval date (see below) https://t.co/ZhtN86f0Q3
— Eric Balchunas (@EricBalchunas) December 4, 2023
BTC ETF Redemption Models
Another important topic is the potential ETF redemption model. The SEC’s Trading and Markets division held a meeting with some of the applicants for the spot Bitcoin ETF, discussing the choice of “cash create” model summary or “in-kind” redemption model for the impending ETF.
Applicants like BlackRock appear to prefer the in-kind model over the cash create model, as it presents a cleaner structure. Balchunas mentioned a rumor that only cash creates will be allowed in the first grouping. If this rumor is true and BlackRock sticks to its choice of ‘in-kind’ redemption model, the asset manager is likely to miss out on the first grouping.
It is also uncertain if Grayscale will be allowed to convert its GBTC to an ETF in the first grouping, even after updating its application. Expectations are high as the crypto community awaits the SEC’s decision.
The post Bitcoin ETF: Here are Key Trends to Watch This Week appeared first on CoinGape.
