Approval Expected for Ishares Bitcoin Trust by Wednesday
The anticipation surrounding the U.S. Securities and Exchange Commission (SEC) decision on spot bitcoin exchange-traded funds (ETFs) has intensified, with analysts suggesting that the regulatory body may greenlight multiple applications early next week. The SEC faces a deadline of January 10 to decide on the joint proposal for a spot bitcoin ETF by Cathie Wood’s Ark Invest and 21shares.
While some speculate that a decision might be reached as early as Monday, BlackRock, the largest global asset manager, anticipates the SEC’s approval for its spot bitcoin ETF, the Ishares Bitcoin Trust, on Wednesday, as reported by Fox Business.
Currently, there are 11 spot bitcoin ETFs competing for approval, and proposals for their listing and trading were submitted to the SEC on Friday. Once the SEC approves these proposals and the issuers finalize their S-1 (prospectus) filings, the authorized spot bitcoin ETFs can commence trading.
In addition to BlackRock’s Ishares Bitcoin Trust, the other 10 applicants include Grayscale Bitcoin Trust, Ark 21shares Bitcoin ETF, Bitwise Bitcoin Trust, Vaneck Bitcoin Trust, Wisdomtree Bitcoin Trust, Invesco Galaxy Bitcoin ETF, Fidelity Wise Origin Bitcoin Trust, Valkyrie Bitcoin Fund, Hashdex Bitcoin ETF, and Franklin Bitcoin ETF.
BlackRock has reportedly secured over $2 billion for the launch of its Ishares Bitcoin Trust, with Jane Street and JPMorgan identified as the fund’s authorized participants.
Last-minute efforts, such as a letter from Better Markets cautioning against financial chaos and significant investor harm, seek to influence the SEC to reject spot bitcoin ETFs. However, many remain optimistic about the SEC’s approval, dismissing these concerns. Vaneck’s digital assets director emphasized last week that investors often underestimate the long-term impact of spot bitcoin ETFs.