Bitcoin ETF issuers clear hurdle on path to SEC approval

Bitcoin ETF issuers clear hurdle on path to SEC approval
SEC staff members asked some exchanges and issuers seeking to list the ETFs to submit the final version of a key document as soon as Friday, sources said.
JAN 05, 2024
By  Bloomberg

Firms looking to launch spot bitcoin exchange-traded funds cleared a major hurdle this week on the path to gaining sign-off from U.S. regulators in coming days.

Securities and Exchange Commission staff told several exchanges and issuers seeking to list the ETFs that they should submit a final version of a key document as soon as Friday, according to four people familiar with the matter who asked not to be named because the discussions are private. The staff had no additional feedback on the paperwork for several of the firms after the latest amendments, two of the people said.

The documents are what are known as 19b-4 filings, which are proposals for rule changes on stock exchanges that will allow the ETFs to be traded. 

The SEC commissioners are expected to vote on the exchange-rule filings next week, according to another person familiar with the process. Often, ETF approvals can be delegated to SEC staff without a vote by commissioners. It’s unclear whether SEC staff had no additional feedback on all of the firms’ 19b-4 filings.

The issuers also need the SEC to sign off on the final versions of their S-1 filings, which are the prospectus documents for the ETFs. SEC approval of the 19b-4 and S-1 forms may or may not happen concurrently, though typically the S-1s are approved after the 19b-4s.

A representative for the SEC declined to comment.

Should both approvals be obtained, the ETFs could start trading as soon as the next business day. 

Last week, multiple issuers, including BlackRock Inc. and Fidelity, submitted amended S-1 filings to name their authorized participants — broker-dealers responsible for handling the creation and redemption of baskets of shares for ETFs. While the step is typically taken for granted in traditional ETF creations, it drew attention in bitcoin ETF applications because some industry watchers had expressed concerns that bitcoin funds would have a harder time attracting broker-dealers. 

Spot bitcoin ETF will open path for new crypto asset class, says Grayscale ETF head

Latest News

Fintech bytes: Vestwell comes through for underserved savers with multilingual support
Fintech bytes: Vestwell comes through for underserved savers with multilingual support

MyVest and Vestmark have also unveiled strategic partnerships aimed at helping advisors and RIAs bring personalization to more clients.

UBS profit beats estimates as Ermotti sees brighter outlook
UBS profit beats estimates as Ermotti sees brighter outlook

Wealth management unit sees inflows of $23 billion.

Evercore to buy advisory firm Robey Warshaw for $196 million
Evercore to buy advisory firm Robey Warshaw for $196 million

Deal will give US investment bank a foothold in lucrative European market.

Gates and Buffett’s Giving Pledge is 15 years old, but many signatories are richer than ever
Gates and Buffett’s Giving Pledge is 15 years old, but many signatories are richer than ever

New report examines the impact that the initiative has had on philanthropy.

Americans stay the course on 401(k) savings despite inflation fears
Americans stay the course on 401(k) savings despite inflation fears

Few feel confident that they will meet their retirement goals.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.