On Tuesday, the U.S. Securities and Exchange Commission (SEC) officially added the application for Bitwise’s Bitcoin ETP Trust spot, a Bitcoin-based exchange-traded fund (ETF), to its federal register, christening a 240-day process for the securities watchdog to make a final decision on the proposal.
The San Fransisco-based investment management firm is one of six spot Bitcoin ETF applicants that are awaiting the SEC’s approval, which also includes big players such as BlackRock and Fidelity. The financial markets are also eagerly waiting for a final ruling as the financial regulator is expected to add the applications to its register in the coming days.
Last week, the SEC published a consultation paper on the Bitcoin ETFs to seek public opinion on enabling the investment tool. The register that the agency adds proposals to is a U.S. government gazette that contains executive orders, federal agency regulations, proposed agency rules, and other important documents that have to be publicized by law.
The 240-day process is for the SEC to approve, reject, or delay applications, and it’s broken down into four cycles – 45 days, 45 days, 90 days, and 60 days. The regulatory authority cannot ask for more time beyond the 240-day mark.
A vast majority of investors don’t expect the SEC to approve any of the applications, but since tycoons like BlackRock and Fidelity are involved, there is a glimmer of hope on the horizon as it is more likely that the agency will give Bitcoin ETFs the green light.
Deadline Approaches For Ark Invest and 21Shares Bitcoin ETF
However, there are deadlines for some of the early applicants that are fast approaching. Like the ARK 21Shares Bitcoin ETF by Switzerland-based crypto investment management firm 21Shares and Cathie Wood’s New York-headquartered asset manager Ark Invest. The spot ETF was refiled by the companies in April after the SEC had rejected their previous attempt in March 2022.
ARK 21Shares Bitcoin ETF was added to the register on May 15. A decision on the ETF was to be made 45 days later on June 29, which was extended for another 45 days until August 13.
Valkyrie’s Bitcoin ETF Waiting To Be Added To The Register
Digital asset management and investment firm Valkyrie’s VanEck Bitcoin Strategy ETF was the final one to be accepted by the SEC. On Monday, the securities agency added the spot ETF to the federal register, as confirmed by a spokesperson for Valkyrie.
Also Check: Nasdaq Halts Plans For Crypto Custody Service, Cites Lack of Regulatory Clarity
SEC Accepts BlackRock’s Application For Review
Last Tuesday, the SEC accepted the application for BlackRock’s iShares Bitcoin Trust. The proposal was refiled by the world’s largest asset manager after the SEC had expressed concern that its original application filed in June was not “sufficiently comprehensive”.
BlackRock convinced regulators by adding a “surveillance-sharing” agreement with Coinbase, asking the U.S.-based crypto exchange to become a custodian for its Bitcoin. Ark Invest and Fidelity also sought similar arrangements to get their Bitcoin ETFs moved to the review.
If approved, the iShares Bitcoin Trust will be listed on the Nasdaq stock exchange and will also become America’s first spot Bitcoin exchange-traded fund (ETF).
Coinbase Shares Soar After 5 Bitcoin ETF Applicants Sign Surveillance Sharing Agreement
Share prices of the world’s second-largest crypto exchange soared after the company reached an agreement with Cboe’s BZX Exchange to become the custodian for five of its spot Bitcoin ETFs.
Terms were agreed upon for the surveillance-sharing agreement in June and the amendments for all five Cboe ETF applications, including Wise Origin, Wisdom Tree, VanEck, Invesco Galaxy, and ARK 21Shares were filed with the Securities and Exchange Commission last week.
Surveillance-sharing agreement or SSA has become an integral part of all ETF applications with the SEC. The regulator considers the arrangement necessary to prevent any sort of market manipulation and to also protect investors.
Once approved, the exchange-traded funds will allow traditional investors to get exposure to Bitcoin without being directly involved in the highly-volatile crypto market.
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