Insiders familiar with the proceedings indicate that the SEC may begin notifying issuers of approval starting Friday, paving the way for potential trading to commence as early as the following week.
On Wednesday, January 3, the US Securities and Exchange Commission (SEC) scheduled a meeting with the top three stock exchanges on Wall Street – Nasdaq, Cboe, and the New York Stock Exchange – to finalize comments on their 19b-4 filings.
Nasdaq, having submitted its 19b-4 form for BlackRock’s iShares Bitcoin Trust during the summer, held a meeting with the SEC staff. This meeting is a routine part of the process for filing a new product, according to an individual familiar with the matter.
🚨SCOOP: The @SECGov is holding meetings today with the exchanges (@Nasdaq, @CBOE, @NYSE) to finalize comments on the 19b-4s submitted by the $BTC Spot ETF issuers.
— Eleanor Terrett (@EleanorTerrett) January 3, 2024
It’s important to note that the upcoming meeting does not signal any alterations in the likelihood of the SEC approving a spot Bitcoin ETF. The same source emphasized that they cannot provide insights into the timing of the SEC’s decision to either approve or reject a spot bitcoin ETF.
The gatherings provide an optimistic indicator that the SEC is approaching the approval stage for a portion or potentially all of the twelve applications submitted by prominent financial institutions. Notably, the SEC is requesting the exchanges to amend and complete their 19b-4 filings, which were submitted on behalf of issuers and require SEC clearance before the ETF can be made available to the public. An SEC spokesperson said that they wouldn’t comment on individual filings. The spokesperson added:
“Broadly speaking, if the Commission declares a registration statement effective, that is reflected on EDGAR. Any Commission 19b-4 orders will be posted on our website and then published in the Federal Register.”
SEC To Notify on Bitcoin ETF Approval by Friday
While the final decision remains pending, sources closely involved in the proceedings suggest that the SEC might initiate the notification of approval to issuers starting Friday, with potential trading commencement as early as the following week. Both ETF analysts and issuers are optimistic that the SEC will deliver a favorable decision on or before January 10, supported by ongoing meetings between the SEC and key stakeholders.
However, it is crucial to note that the SEC retains the option to reject the applications. Prior to FOX Business reporting on the Wednesday meetings, Matrixport, a Singapore-based crypto platform, released a research note anticipating the SEC’s rejection of all spot bitcoin ETF applications.
The basis for this expectation includes the Democrat majority on the agency’s five-member commission and Chairman Gary Gensler’s perceived reluctance to embrace cryptocurrencies. Following this report, the price of bitcoin experienced a more than 7% decline after reaching close to a two-year high of $45,000 on New Year’s Day, driven by anticipation of a spot ETF approval.
At press time, the Bitcoin price is down by 5% trading at $43,123 and a market cap of $844 billion.
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