- January 11, 2024
- Posted by: [email protected]
- Category:
In a significant development within the cryptocurrency space, applicants for spot Bitcoin exchange-traded funds (ETFs) find themselves at a crucial juncture as the U.S. Securities and Exchange Commission (SEC) responds swiftly to their revised applications. The focus of the SEC’s attention lies in the unveiling of previously undisclosed fee structures by these ETF issuers.
The SEC’s critiques, following closely on the heels of the updated fee disclosures, have triggered speculation within the crypto community. The concern centers around the possibility of a delay in the long-anticipated approvals of Bitcoin ETFs, injecting a degree of uncertainty into the minds of crypto investors.
Perianne Boring, CEO of the Chamber of Digital Commerce, highlighted this apprehension in a social media post, emphasizing the potential delay signaled by the SEC’s additional comments on pending applicants’ S-1 forms. The post quickly gained traction, amassing over a million views and contributing to a sense of unease among cryptocurrency investors.
James Seyffart, an ETF analyst with Bloomberg Intelligence, offered insights into the SEC’s response, attempting to shed light on the implications of the regulatory feedback. Notably, the revisions submitted by ETF issuers take the form of S-1 documents. Importantly, these S-1 forms do not necessitate approval before the SEC can proceed with 19b-4, which specifically pertains to the spot Bitcoin ETF application forms.
Clarifying this regulatory process, finance lawyer Scott Johnsson pointed out that S-1s do not require completeness at the time of 19b-4 approval. Drawing a parallel with the experience of futures ETFs in 2022, he cited the example of Hashdex, whose initial comments were received after the approval of 19b-4. Johnsson concluded that the rapid comments from the SEC reflect a proactive effort to expedite the approval process and subsequent launch, in contrast to the delays observed with futures.
In an effort to allay concerns, Fox Business journalist Eleanor Terrett reached out to sources and confirmed that the SEC does not intend to deviate from its existing schedule. She relayed assurances from individuals who had received additional comments, asserting that there is no cause for worry and that the SEC has not communicated any change in plans.
As the crypto community anxiously awaits further developments, the intricate dance between regulatory scrutiny and industry anticipation continues, shaping the trajectory of Bitcoin ETFs in the financial landscape.
