BlackRock Sparks Hope for January Bitcoin ETF Approval

In a recent update, BlackRock and three other entities discussed Spot Bitcoin ETF approval with the SEC. This has sparked optimism for a green light in January. Bloomberg analyst James Seyffart shared on X that BlackRock engaged with the SEC for the third time in three weeks. The recent meeting on Dec 11 didn’t seem to focus on the regulator’s previous concerns about BlackRock’s in-kind model.

Seyffart revealed that three other players – Fidelity (on Dec 7), Grayscale, and Franklin (on Dec 8) – also had recent discussions with the SEC. Notably, it’s Grayscale’s second meeting with the SEC.

Seyffart and colleague Eric Balchunas maintain their prediction of a 90% chance for Spot BTC ETF approval in Jan. Responding to inquiries, Seyffart affirmed his stance but clarified the approval was for 19b-4, and the listing timeline was still under consideration.

Spot Bitcoin ETFs: SEC Approval Progress

In his recent update, Seyffart highlighted the crucial presence of the Division of Trading & Markets and Corporate Finance in key meetings. These divisions hold the key to the fate of Spot Bitcoin ETFs, making progress indications significant for both the SEC and issuers.

Furthermore, Seyffart and Balchunas consistently emphasized the Division of Trading & Markets’ approval as pivotal, anticipated around Jan 10. Despite this, a nod from the Division of Corporate Finance, responsible for endorsing S-1 filings, is essential before the funds launch.

The prevailing belief is that the second approval might swiftly follow the first. Scott Johnsson, an attorney at Davis Polk, hinted that the SEC might have intentionally delayed S-1s until 19b-4s were approved, a strategy dubbed “max delay.”

Yet, with S-1 filings underway and the Division of Corporate Finance engaged early, this delay tactic may not be in play. Observers like Johnsson suggest a smoother and quicker approval process, pointing to a potential positive trajectory for Spot Bitcoin ETFs.

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Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.

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