In a late-breaking development, BlackRock has just submitted an updated version of the S-1 application for a Bitcoin Spot ETF to the U.S. Securities and Exchange Commission (SEC). This decision comes amidst ongoing negotiations between the SEC and several applicants, including BlackRock, for the approval of Bitcoin Spot ETFs. Expectations are causing jumps in the price of BTC, and the blockchain community eagerly awaits the outcome of these negotiations.
Bloomberg analysts had previously reported on the ongoing negotiations between the SEC and BlackRock, as well as other applicants undergoing the same regulatory process. Recently, Bitwise also made amendments to its application with the SEC, suggesting that companies, which had submitted their applications before approval, are engaging in discussions with the regulatory body and making progress in their proposals
UPDATE: They're just pouring in. We have another spot #Bitcoin ETF S-1 (prospectus) amendment tonight. This one is from @BlackRock. SEC is obviously giving multiple issuers the same or very similar instructions. pic.twitter.com/nk1yImZpXk
— James Seyffart (@JSeyff) December 4, 2023
The SEC’s preference for the cash method, similar to futures transactions, is a contentious point of debate. Despite the commission favoring this approach, applicants, including BlackRock, have resisted and instead advocated for the in-kind method, which would involve the direct holding of Bitcoin. This difference in approaches is a constant subject of discussion with the regulatory body and has led to more than one adjustment in the applications.
Bloomberg Nearly Certain of Approval for Bitcoin Spot ETF
Bloomberg analysts state that there is a 90% probability of approving Bitcoin Spot ETFs by January 10. This optimism is based on recent updates to the applications and ongoing negotiations between the SEC and the applicants.
The price of Bitcoin (BTC), although on an upward trend for a considerable period, experienced another notable increase, surpassing the $42,370 mark yesterday. At the time of writing, BTC is trading at $41,688 after a readjustment. The surge is largely attributed to the anticipation of the possible approval of the spot ETF.
James Seyffart, a cryptocurrency analyst at Bloomberg, commented on BlackRock’s update to the Bitcoin Spot ETF application, stating that updates are consistently coming in. He added that these actions indicate that both the SEC and the applicants are diligently working to meet requirements and reach mutual agreements. This process is the result of extensive discussions and joint efforts to pave the way for the approval of the highly anticipated ETF.
