Crypto investors and asset managers are eagerly awaiting the Securities and Exchange Commission’s decision on a dozen spot Bitcoin ETF applications, with many experts expecting a decision this week. Enthusiasts are hopeful that a potential approval could add billions of dollars in value to the cryptocurrency sector, but there are many steps to be taken for this to become a reality.
Countdown for ETF Decision Continues
The decision, eagerly awaited due to the final deadline of January 10 for the SEC to respond to the first application by Cathie Wood’s ARK Investment and 21Shares, is expected to be partially made in the coming days. However, some analysts have pointed out that the SEC has broad authority in this process and may try to delay a decision again.
Nevertheless, the week ended on an optimistic note as institutions rushed to fill out new 19b-4 forms for each proposed fund. The market will keenly monitor the SEC’s website this week for news related to these rule filing forms, and any general approval will likely be determined here.
During this process, issuers are expected to submit amended S-1 registration forms for the proposed Bitcoin ETF services, set terms related to fees, name authorized participants, and remove items in parentheses.
What to Expect in the ETF Process?
The approval process for an ETF is two-fold; first, the 19b-4 forms must be approved, followed by the S-1 forms becoming effective. Once these two conditions are met, the SEC can permit trading transactions to begin, and some asset managers have already announced that they are ready for approval.
Representatives of five financial firms told Reuters that they discussed the last S-1 amendments with regulators and expect to file the changes and receive approval by January 8 and 9, which could mean the launch of a spot Bitcoin ETF service by the weekend.
How the SEC will announce any decision is still unknown. The regulatory body could make a decision about all applications at once, accept some and reject or delay others. Any decision will likely be announced by the SEC or the asset managers themselves. Developments can also be followed through the SEC’s electronic database EDGAR. A spokesperson for the SEC had previously stated:
“We do not comment on individual applications. Generally speaking, if the Commission declares a registration statement effective, it will be reflected on EDGAR. Any Commission 19b-4 decision will be published on our website and subsequently in the Federal Register.”
