The investment management firms, stock exchanges, and the US Securities and Exchange Commission (SEC) engaged in discussions regarding final wording changes on filings for spot bitcoin Exchange-Traded Funds (ETFs), a significant development that could lead to the approval of such funds in the US for the first time next week, according to sources familiar with the matter.
Executives and representatives from five firms held discussions with SEC officials about the S-1 prospectus documents, which are required for approval of every ETF.
These discussions, while ongoing, have brought optimism among issuers, with expectations for final approval of S-1 filings by late Tuesday or Wednesday.
The SEC requested "minor" changes, and some asset managers are anticipated to revise their filings to disclose fees or identities of market participants for their ETFs. The deadline for these updates is 8 a.m. ET on Monday, with potential public disclosure on the same day.
An SEC spokesperson declined to comment on individual filings.
Simultaneously, regulators have collaborated with exchanges to finalise 19b-4 filings, outlining the rule changes required for the launch of spot bitcoin ETFs. On Friday, exchanges submitted revisions to 11 of these filings.
Insiders familiar with the process suggest that issuers meeting end-of-year filing revision deadlines may gain approval to launch by January 10, a crucial date for the SEC's decision on the Ark/21Shares ETF, the first in line.
Since 2013, multiple asset managers have sought approval for spot bitcoin ETFs, facing rejections due to concerns about market manipulation. Last year, 14 firms, including BlackRock, Fidelity, and WisdomTree, submitted applications for spot bitcoin ETFs, awaiting a decision from the SEC.
In an unusual move, the SEC has asked issuers planning to launch next week to prepare written requests to accelerate the effective date for their ETFs. Typically, the timing is discussed more informally between regulators and issuers.
Reports suggest that SEC commissioners are expected to vote on the 19b-4 rule changes next week, with sources indicating that the vote is likely to take place on Wednesday.
