Investment management firms, stock exchanges, and the U.S. Securities and Exchange Commission had a discussion on Friday regarding the final edits in filings for spot bitcoin ETFs. This significant step might pave the way for the first-ever approval of these funds in the U.S. as early as next week, as per sources familiar with the situation.
During talks, issuers engaged with SEC officials about refining the S-1 prospectus documents required for approval by every exchange-traded fund (ETF). Five firms’ executives and representatives, preferring anonymity due to the ongoing confidential discussions, confirmed these interactions.
Expectations run high among several issuers for the final green light on S-1 filings, anticipated by late Tuesday or Wednesday.
The SEC requested what three issuers called “minor” tweaks. Some asset managers may update their filings to disclose ETF fees or market-makers’ identities. These modifications are due by 8 a.m. ET on Monday and could be made public on the same day, as per sources knowledgeable about the process.
The SEC refrained from commenting on individual filings, as stated by an agency spokesperson.
Concurrently, regulators collaborated with exchanges to refine 19b-4 filings, delineating rule changes essential for launching spot bitcoin ETFs. On Friday, exchanges revised 11 of these filings.
Insiders familiar with the filing process suggested that issuers meeting end-of-year revision deadlines could gain approval to launch by January 10, the pivotal date for the SEC’s decision on the Ark/21Shares ETF, leading the queue.
Numerous asset managers have sought permission to launch spot bitcoin ETFs since 2013, facing SEC rejections due to concerns about potential market manipulation. Last year, 14 firms, including BlackRock, Fidelity, and WisdomTree, submitted applications, awaiting the SEC’s verdict.
In an unusual move, the SEC has asked potential launchers for next week to prepare written requests to hasten the effective date for these ETFs. Typically, such timing discussions occur informally between regulators and issuers.
Previously, Bloomberg indicated that SEC commissioners might vote on the 19b-4 rule changes in the upcoming week. A source from one of these firms informed Reuters that the vote is likely to happen on Wednesday.
