SEC Engagement Continues

Asset manager BlackRock and Bitwise have made crucial updates to their applications for launching the first-ever spot Bitcoin ETF in the United States. 

The revised documents, now available on the U.S. Securities and Exchange Commission (SEC) website, indicate ongoing discussions between the SEC and market players regarding approving a spot Bitcoin ETF.

Analysts interpret these updates as strategic moves, allowing companies to tailor their applications to meet the SEC's evolving requirements. 

BlackRock's updated filing outlines robust measures the trust administrator will implement to monitor unusual price movements. Emphasizing anti-money laundering (AML) compliance, the application now includes an audited statement from PricewaterhouseCoopers. 

In addition, the sponsor and trust will work exclusively with third-party service providers thoroughly vetted for Know Your Customer (KYC) compliance, such as Authorized Participants, Market Makers, Prime Brokers, and Bitcoin Custodians.

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Insight from Bloomberg Analyst

Bloomberg analyst James Seyffart shared insights on the updates, suggesting ongoing discussions between the SEC and spot Bitcoin ETF issuers. He believes the amendments result from extensive conversations and collaborative efforts. 

Bloomberg analysts predict that the U.S. will approve a bitcoin ETF in January 2024. According to James Seyffart and Eric Balchunas, there is a 90% chance that ARK Invest's application for a Bitcoin ETF will be approved before January 10, 2024. 

The cryptocurrency market has experienced heightened speculation, with Bitcoin surging about 20% in the past month amid speculation that the SEC might approve a spot fund. Bitcoin is trading at just under $42,000 as of writing, reflecting positive sentiment regarding the launch of a spot Bitcoin ETF.