Crypto investors and asset managers are eagerly awaiting the Securities and Exchange Commission’s (SEC) decision on several Bitcoin ETF applications. A positive outcome could significantly boost the crypto sector, but multiple steps are necessary for approval. The deadline for the SEC to respond to ARK Investment and 21Shares was January 10, raising expectations for an impending decision.
Despite the anticipation, some analysts warn that the SEC has broad discretion and may delay its decision. The past week ended on an optimistic note as institutions rushed to file new 19b-4 forms for each proposed fund. The market is closely monitoring the SEC’s website for updates on these filings.
Issuers are expected to submit amended S-1 registration forms, define fee-related terms, name authorized participants, and remove bracketed items for their proposed Bitcoin ETF services. The approval process for an ETF is twofold: first, the 19b-4 forms must be approved, followed by the activation of S-1 forms. Once these conditions are met, the SEC may permit trading to commence.
Representatives from five financial firms have discussed the final S-1 amendments with regulators and expect to file changes and receive approval by January 8-9, potentially launching a spot Bitcoin ETF service by the weekend. However, how the SEC will announce its decision remains unknown. It could issue a collective decision on all applications, approve some while rejecting or delaying others, or make individual announcements.
The SEC spokesperson has stated that individual applications are not commented on, but if a registration statement is declared effective, it will be reflected on EDGAR. Any Commission decision on 19b-4 filings will be published on the SEC’s website and later in the Federal Register.