- Bitcoin ETF issuers are fine-tuning their applications with the Securities and Exchange Commission.
- Hashdex held a meeting with the SEC Chair’s office.
- Ark Invest’s Cathie Wood is optimistic about approval in the coming year.
As the year winds down, anticipation is building for the Securities and Exchange Commission’s verdict on Bitcoin Exchange-Traded Funds and the game-changing prospects that a potential approval holds for the industry. The SEC has set forth specific requirements that define proposers’ positions in the race for approval, including a ‘Cash Only‘ mandate, and a deadline for final amendments.
In the high-stakes race against the clock as the January 10 deadline approaches, issuers are amping up their efforts to fine-tune proposals in hopes of a positive outcome.
Grayscale Bends the Knee, Hashdex Meets with Gensler
On Tuesday, December 26, Grayscale filed a second S-3 amendment in its Grayscale Bitcoin Trust (GBTC) application with the SEC.
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The amendment included a long-held surrender to the SEC’s mandated ‘Cash Only’ requirement, joining the ranks of other applicants such as BlackRock and Ark Invest.
The ‘Cash Only’ condition, which ensures that investors receive cash instead of other assets upon redemption, has been a point of contention for the SEC, which the agency claims is intended to ensure investor protection from market manipulation.
Grayscale is not the only hopeful issuer making renewed efforts. Hashdex is also working to fortify its position but has opted for a different approach. The firm took a more direct line and held a meeting with the SEC Chair’s office instead of the usual ‘trading and markets’ or ‘corporate finance’ offices.
The meeting marks Hashdex’s third encounter with the commission to propose additional rule changes to its Hashdex Bitcoin ETF application, including the listing and trading of shares of the Hashdex ETF under the NYSE Arca Rule 8.500-E.
The latest efforts underscore the shared aspirations of Bitcoin ETF issuers for a green light from the SEC on their applications, aligning with expert predictions that the January 10th approval is highly likely.
Cathie Wood Optimistic For Bitcoin ETF Approval
In a December 26 CNBC interview, Ark Invest founder and CEO Cathie Wood expressed optimism about the potential approval of the 21Shares ETF.
Wood highlighted that the SEC has deepened its understanding of Bitcoin and its associated concerns through ongoing engagements with issuers and anticipates a positive decision from the commission on January 10, 2024.
Underscoring the potential benefits, she emphasized that institutional crypto investment will surge as approval will signal a green light for institutions that have hesitated to invest in the industry.
The Ark Invest founder further emphasized the position of Bitcoin as a hedge against inflation and deflation and envisions a future where it serves as an investment comparable to physical gold.
On the Flipside
- While recent developments hint at the certain approval of Bitcoin ETFs, the ultimate decision rests with the SEC.
- The commission’s strong preference for cash redemption is considered limiting to the flexibility and investment options of Bitcoin ETFs.
- The deadline for Grayscale’s verdict by the SEC is January 25, 2024.
Why This Matters
The global crypto industry eagerly anticipates the SEC’s decision on crypto ETFs, and a potential approval will usher in promising and limitless benefits for the ecosystem.
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