- BlackRock is awaiting the SEC’s nod on its spot Bitcoin application.
- The asset management has filed an amended application with the commission.
- Bitwise has also submitted a revised amendment of its application with the SEC.
The cryptocurrency industry has been abuzz with anticipation regarding the potential approval of spot Bitcoin ETFs as both issuers and the community await a decision from the Securities and Exchange Commission (SEC). Despite the commission deferring the deadline for its decision, issuers are taking additional measures to redefine their applications to secure a positive outcome.
In line with this, asset management firms BlackRock and Bitwise have submitted newly amended applications of their respective spot Bitcoin ETF applications.
BlackRock Amends Spot ETF Application
On Monday, December 4, BlackRock filed a second amended prospectus for its spot ETF application with the Securities and Exchange Commission (SEC).
Sponsored
The prospectus stated that BlackRock will monitor market trends for unusual price volatility as part of its objectives with the trust to ensure investor protection.
BlackRock further stated that it will only deal with authorized investors to ensure adherence to U.S anti-money laundering requirements and other compliance measures:
“The Sponsor and the Trust will only interact with known third-party service providers with respect to whom the Sponsor or its affiliates have engaged in a due diligence process to ensure a thorough KYC process, such as the Authorized Participants, Market Makers, Prime Broker and Bitcoin Custodian.”
BlackRock has pledged to maintain a public website on behalf of the Trust, offering essential information such as risk factors associated with the Trust and its Shares.
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BlackRock is not the only issuer engaged with the SEC, as Bitwise Asset Management has also revised its application for a Bitcoin exchange-traded fund (ETF).
Bitwise Files New Amendment
In a similar move on December 4, Bitwise amended its application with the Securities and Exchange Commission.
The filing revealed the asset management firm’s plan of distribution, risk factors, and investment strategies.
Bitwise also issued a disclaimer highlighting that its offerings may not suit investors unprepared to assume risks.
“Investment in the trust may not be suitable for investors that are not in a position to accept more risk than may be involved with other exchange-traded products that do not hold Bitcoin or interests related to Bitcoin. The shares are speculative assets. Their purchase involves a high degree of risk and you could lose your entire investment”, the statement reads.
Bitwise will offer the buying and selling of the trust’s shares through licensed brokers in compliance with the SEC’s regulatory standards.
On the Flipside
- The ongoing conversations between the SEC and issuers hint at a potential imminent debut of spot ETFs.
- On November 15, the SEC extended its deadline for the decision on Grayscale’s and Hasdex’s applications, now scheduled for January 1, 2024.
- Bitcoin is currently experiencing a bullish run, soaring past a $42,000 price point, and a potential approval may further contribute to the rally.
Why This Matters
The revised applications by BlackRock and Bitwise highlight the issuers’ efforts to comply with the SEC’s instructions amid the mounting anticipation for approval.
Read more on the Bitcoin rally and El Salvador’s soaring gains:
El Salvador’s Bitcoin Investment Records Profit Amid Rally
Inflows to crypto funds continue to peak as investors maintain unwavering ETF hope. Read more:
Crypto Funds Hit 10-Week Inflow Streak on Continued ETF Hope
