Bitwise has revised its Spot Bitcoin ETF application. Other firms have also followed the route set by BlackRock. The crux of the matter is enabling creators in kind along with cash. The SEC is keen to delink the product from the volatility of the market. However, potential issuers are expressing their desire to have an in-kind settlement as an option.
The revision comes to the Second S-1 amendment, signaling that the Commission and potential issuers are still in touch for approval. This has generated speculation that the approval could come by January 10, 2024. The trend was kicked off by BlackRock. If BlackRock wins against the SEC, it will largely decide how Bitwise and other probable issuers make settlements.
A win will open up the possibility of in-kind creation. If not, then cash will have to suffice just to get out, expert analysts explain. Most of it further depends on the conversion of Greyscale’s product into an ETF.
Nevertheless, analysts believe that there is a 90% chance that the Commission will approve the applications by January 10 next year. It could also happen as early as January 8, 2024. The revised proposal by BlackRock is currently with the SEC and Nasdaq. The aim is to attract inventors and maintain a balance with what the Commission has laid out as a preference.
BlackRock’s request deals with enabling investors to trade directly with BTC. The Commission has sought caution in putting forward such requests due to the link to market volatility. An approval will empower traders to deal directly with BTC instead of relying on futures like other cash-based ETFs.
The SEC has delayed the approval of the application for Franklin and Hashdex. That was the first hint to the market that all applications could be approved together. Franklin, for one, has not been affected by this development. It has rather expressed confidence in getting the green light with other players.
The idea is to eliminate giving any particular firm the first mover’s advantage. No matter when the approval happens, the community is excited because it carries the potential to fuel the bullish run for the crypto sphere. Bitcoin was last seen exchanging hands at $41,558.93. It has been teased to surpass the milestone of $45k. It is also the next resistance level as set by the holders.
That could be a turning point, depending on how mid-term investors react. They would be at a break-even point. Facing a challenging risk could yield better results or make them wait for more time. They have already stood by the token for the last 2–3 years. It could be the right time to extend the holdings.
Updating Spot Bitcoin ETFs have, so far, come from BlackRock and Bitwise. Balancing the preference of the SEC with making the space attractive for investors is the priority. All of it will later come down to what call the SEC takes.