It’s been a rollercoaster of a ride for bitcoin supporters this past week as they await on the US Securities and Exchange Commission’s (SEC) approval on the Spot Bitcoin Exchange-Traded Funds (ETFs). Reportedly, the agency has already approved the spot bitcoin ETF listing; however, access to SEC document declaring the decision is broken as of press time.
One of the sources of said decision is Eric Balchunas, a senior ETF analyst at Bloomberg, who also earlier said that the SEC is in the final stages of providing comments to issuers on their applications, with multiple applicants set to submit their final 19b-4s and S-1s following the feedback.
This raises once again the veracity of the so-called approval. Observers are calling out the accounts who posted said links to the decision, claiming that they were misleading.
However, a screenshot of the SEC decision has been circulating on social media. In it, the document said that the proposals are approved “on accelerated basis.”
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A tweet thread from James Seyffart of Bloomberg hinted at an approval order on the SEC website noting, “It certainly looks like the #Bitcoin ETF Approval order had hit the SEC website but the link is no longer working. That said, this document looks accurate to me.”
What stands out in this development is the inclusion of all 11 issuers in the order/filing, indicating an inclusive approach by the SEC. Seyffart highlights the significance, stating, “Notably, all 11 issuers are listed in this order/filing. Looks like no one is being left behind at the starting gate.”
The SEC’s acknowledgment of the CME futures market and its impact on surveillance plays a pivotal role in this potential approval. The official statement from the SEC underscores the importance of the CME futures market, stating, “SEC acknowledging the CME futures market and their impact and effectiveness in surveillance.”
The statement further elaborates on the contrast with previous proposals, emphasizing the improved quality of correlation analysis. According to the SEC, “the Commission is able to conclude that fraud or manipulation that impacts prices in spot bitcoin markets would likely similarly impact CME bitcoin futures prices.”
A key aspect of the approval process is the role of the CME’s surveillance in detecting fraudulent and manipulative acts. The SEC’s comprehensive surveillance-sharing agreement with the CME is seen as a valuable tool in monitoring the cryptocurrency markets. The statement highlights the correlation between spot bitcoin and CME bitcoin futures prices, indicating that the CME’s surveillance capabilities can aid in detecting and preventing fraudulent practices.
Despite this apparent confirmation, Seyffart notes, “Can pretty much guarantee that the SEC did not intend for anyone outside the SEC to get their hands on this document/link yet.” However, he confirms having downloaded the document from the official SEC website, affirming its status as an approval order. Seyffart speculates, “Assume the SEC will repost shortly.”
Adding energy to support the veracity of the approval, the Cboe BZX Exchange has announced the approval of securities listings from various asset managers applying for bitcoin ETFs. In letters submitted to the SEC on January 10, Cboe disclosed its approval of spot bitcoin ETF offerings from ARK 21Shares, Invesco Galaxy, Fidelity, VanEck, WisdomTree, and Franklin Templeton.
Notably, the deadline for the final approval or denial of the spot Bitcoin ETF from ARK 21Shares is January 10, prompting speculation that the SEC might approve multiple offerings simultaneously from different asset managers.
Following these developments, Cboe has released several new issue notifications indicating that spot Bitcoin ETFs will commence trading on the exchange on January 11. The notifications conveyed, “We are pleased to announce that the exchange-traded product will be listed on Cboe and will begin trading as a new issue on January 11, 2024.”
As outlined on the Cboe website, the six funds scheduled to commence trading on January 11 are ARK 21Shares Bitcoin ETF, Fidelity Wise Origin Bitcoin Fund, Franklin Bitcoin ETF, Invesco Galaxy Bitcoin ETF, VanEck Bitcoin Trust, and WisdomTree Bitcoin Fund.
Validity of the news surrounding the approval of spot bitcoin ETF has been a crucial factor these past days after a supposed hack on the SEC’s X account to prematurely post about the approval.
This is a developing story.
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
