U.S. SEC Said to Open Talks with Grayscale on Spot Bitcoin ETF Push
Representatives of the company are answering questions from two divisions of the U.S. Securities and Exchange Commission in the wake of Grayscale's court win over the agency.
CoinGecko: Global spot Bitcoin ETF assets reach $4.16 billion
According to CoinGecko, the global assets invested in spot Bitcoin ETFs currently amount to $4.16 billion, with nearly half ($2 billion) invested in seven spot Bitcoin ETFs launched in Canada since 2021. Canada is also home to the largest Bitcoin ETF in terms of assets under management, with Purpose Bitcoin ETF managing $819.1 million in assets.
In addition, ETC Group Physical Bitcoin (BTCE.DE), launched in Germany in June 2020, currently manages assets worth $802 million, making it the second-largest ETF launched to date. The other seven ETFs in Europe are registered in tax havens such as Jersey, the Cayman Islands, and Liechtenstein, with smaller products trading in Brazil and Australia.
So far, US regulators have only approved crypto ETFs related to futures contracts, such as ProShares Bitcoin Strategy ETF, which manages assets worth around $1.2 billion. Currently, up to 10 spot ETF applications are waiting for the SEC's approval. CoinGecko's report states, "It remains to be seen whether potential US spot Bitcoin ETFs can attract stronger investor interest and surpass Canadian and German ETFs." (Reuters)
BlackRock Spot Bitcoin ETF may be supported by market-making giants such as Jane Street, Jump and Virtu
According to sources have revealed that if regulatory authorities approve BlackRock's Bitcoin ETF, some of the world's largest market makers may participate by providing liquidity. According to information viewed by insiders, trading giants Jane Street, Virtu Financial, Jump Trading, and Hudson River Trading have already negotiated with BlackRock about their market-making roles.
Valkyrie files updated spot Bitcoin ETF prospectus
On October 31st, Bloomberg ETF analyst James Seyffart posted that Valkyrie has submitted an updated prospectus for its spot Bitcoin ETF to the U.S. Securities and Exchange Commission (SEC).
Bloomberg ETF analyst Eric Balchunas commented, "This is why we won't infer a probability of over 90% for approving spot Bitcoin ETFs in January or before."
SEC may approve spot ETF before FTX sells GBTC, thereby eliminating negative premium concerns
FTX holds approximately $417 million in Grayscale Bitcoin Trust Fund (GBTC). Scott Jonhsson, the general partner of Van Buren Capital, stated that FTX's bankruptcy restructuring plan is unlikely to be approved before the second quarter of 2024. It is expected that the SEC will make a decision on spot Bitcoin ETF before then. If GBTC has been converted to an ETF by then, FTX's sale will not exacerbate GBTC's negative premium, as the creation and redemption process of ETFs should only track the underlying BTC price. Sean Farrell, the head of cryptocurrency strategy at Fundstrat, said that the SEC's approval of spot ETFs will help ensure that creditors are compensated and that the discount of GBTC relative to its net asset value will narrow further. Given positive catalysts, cryptocurrency prices are likely to soar overall.
Bloomberg Analyst: A total of 12 spot Bitcoin ETF applications are under review by the SEC after including GTBC
Bloomberg ETF analyst James Seyffart stated on X platform that there are currently 11 applications for a physically-backed bitcoin ETF under SEC review, and if GBTC conversion ETF applications are included, there are a total of 12 applications.
Hashdex Meets with SEC to Address Concerns Over Bitcoin Futures ETF's Spot Bitcoin Holdings
Asset manager Hashdex has reportedly met with the US Securities and Exchange Commission (SEC) to address concerns about its application for the Hashdex Bitcoin Futures exchange-traded fund (ETF) to hold spot Bitcoin. The meeting took place on 13 October and was attended by six SEC officials and representatives of Hashdex, NYSE Arca, Tidal Financial Group, and law firm K&L Gates. Hashdex presented its mechanism for allowing spot Bitcoin to be traded and held in the ETF on the Chicago Mercantile Exchange, which the Commodity Futures Trading Commission regulates. The SEC may ask for more information before the application's first deadline on 17 November.
Bitwise updates its Bitcoin ETF filing with SEC
Bloomberg analyst James Seyffart stated on X platform that Bitwise has updated its Bitcoin ETF filing with the SEC, in response to comments and concerns raised by the SEC, which is in line with market expectations. If Bitwise's product is approved by the SEC, it will trade under the code BITB. Seyffart stated that he did not see anything different from other filings in this version, but rather that more progress has been made, representing ongoing dialogue between the SEC and these applicant companies.
SEC chairman refuses to discuss any of the agency’s plans for a spot Bitcoin ETF
Gary Gensler, Chairman of the US Securities and Exchange Commission, refused to outline any plans regarding the agency's exchange-traded fund (ETF) for spot Bitcoin trading during an interview today. He stated that these are matters for employees to consider and that he will "let things develop naturally" before staff present recommendations to the five-member committee. When asked for any hints regarding the possible timing or application progress, Gary Gensler declined to comment.
DTCC: BlackRock Bitcoin ETF’s appearance on the list does not represent any regulatory outcome
In August 2023, the Bitcoin Trust ETF of BlackRock (BLK.N) was added to the eligibility document by the Depository Trust & Clearing Corporation (DTCC) Table IV. Being on the list does not indicate any indication of unresolved regulatory or other approval results. Adding securities to the NSCC securities eligibility document is a standard practice for launching new ETFs to the market.
