In the midst of an anticipated pivotal week for the crypto realm, attention shifts to the United States Securities and Exchange Commission (SEC). It is expected to greenlight a spot Bitcoin ETF by Wednesday, January 10, with Bloomberg analysts James Seyffart and Eric Balchunas giving it a 90% likelihood. This development underscores the SEC’s forward-looking approach during Chairman Gary Gensler’s tenure.
Preparing for the Approval of the Bitcoin ETF: 5 Key Points to Look Out for This Week
Nate Geraci, President of the ETF Store and co-founder of the ETF Institute, shared his insights on the unfolding situation, stating, “5 things I’m watching this week re: spot bitcoin ETFs…”. He emphasized the critical nature of fee disclosures, especially from industry leaders like BlackRock and Grayscale. Geraci highlighted the significance of fees in the competition, noting Fidelity’s lead with a 0.39% fee and Invesco’s close follow-up at 0.59%.
Geraci’s second focus is on the SEC’s approval vote. Two specific technical criteria must be met for a spot-backed Bitcoin ETF before the SEC’s vote. Initially, the SEC needs to authorize the 19b-4 filings submitted by the exchanges intending to list the ETFs. Subsequently, the regulator is also obligated to sanction the pertinent S-1 forms, serving as the registration applications from the prospective issuers.
As per a Bloomberg report, issuers have until 8:00 am Monday for any last-minute revisions to pending S-1 applications. Following this, the SEC plans to vote on 19b-4s in the coming days. Geraci explained the process: “SEC Division of Trading & Markets must approve 19b-4s, and Division of Corporate Finance must sign-off on S-1s.” He expressed confidence in the approval, stating, “I expect 19b-4 approval orders.”
The third point revolves around the potential launch date, with speculation about ETFs possibly launching as early as Thursday. Geraci is intrigued by the anticipated investor interest, citing rumors of BlackRock entering with $2 billion and ARK possibly investing over $200 million.
A fourth crucial aspect is whether Grayscale’s GBTC will convert or uplist on the same day as other ETF launches. Geraci believes so, based on “tweets from execs, filings, & general actions/messaging.” He highlighted the significance of GBTC’s existing $27 billion in assets, potentially making it one of the top ETFs by AUM upon launch.
