In a significant development, BlackRock and VanEck have filed amended S-1 forms for their respective Bitcoin Spot ETFs applications. This move is in response to the final comments from the Securities and Exchange Commission (SEC).
Yesterday, the Securities and Exchange Commission (SEC) provided feedback to several potential issuers following their recent form submissions. Sources familiar with the issuers have indicated that the SEC’s comments were primarily concerned with minor aspects and are not anticipated to cause any postponements in the application processes.
The documents submitted today reveal slight modifications. These contain provisions detailing the procedures in the event of insolvency of an authorized participant or a Bitcoin trading counterpart. The forms also underscore the possibility of conflicts of interest. Furthermore, they incorporate cautionary statements for prospective investors regarding scenarios that may result in compromised liquidity.
Bloomberg ETF analyst Eric Balchunas noted that the 24-hour turnaround time between the filing, comments, and re-filings shows that all parties involved are “aiming to get this show on the road pronto.”
BlackRock just re-filed their S-1 based on last min comments given yesterday. Hard to tell what has changed at first glance, but imp thing is that the unheard of 24hr turnaround time bt filing, comments and re-filing tells us all parties aiming to get this show on road pronto. pic.twitter.com/61cPtGJ4Oy
— Eric Balchunas (@EricBalchunas) January 9, 2024
The Revised Filings Reveal Fee Structures and Risk Disclosures for Bitcoin Spot ETF
The revised S-1 forms submitted on Monday included definitive information about the respective fee structures. Several Spot Bitcoin ETF providers are extending a zero-fee offer for a specified duration. Bitwise is presenting the most competitive fixed fee at 0.24%, closely followed by Ark/21Shares at 0.25%, and BlackRock at 0.3%.
Moving forward, these issuers are anticipating the approval of their 19b-4 forms by the SEC and the activation of their S-1 filings. Upon the completion of both these processes, trading starts the next day. This progress signifies a substantial advancement in incorporating cryptocurrencies into conventional financial offerings.
The recent filings indicate an extraordinary level of interaction between the SEC and potential issuers. This interaction is evidenced by the rapid succession of filings, SEC feedback, and subsequent revised filings, all occurring within 24 hours.
The consensus is that the SEC will likely approve all applications this week. This expectation is due in part to an impending deadline on January 10, 2024, specifically for one of the applications submitted by Ark and 21 Shares. In the interest of maintaining equity, the SEC may opt to approve all applications simultaneously.