SEC Provides Swift Feedback on Bitcoin ETF Fees, Issuers Urged to File Updates by Tuesday

SEC Provides Swift Feedback on Bitcoin ETF Fees, Issuers Urged to File Updates by Tuesday

Crypto News – With an imminent Wednesday deadline looming, the regulatory body swiftly responded with comments just hours after potential issuers submitted documentation outlining their proposed fees.

Officials from the U.S. Securities and Exchange Commission (SEC) promptly provided feedback to a group of prospective issuers looking to launch bitcoin exchange-traded funds (ETFs). This occurred shortly after the companies submitted documents detailing the fees associated with their proposed products, according to an individual familiar with the matter.

The concerned issuers have been advised to submit updated documents by Tuesday, as the comments primarily addressed minor details in the amended S-1 forms rather than significant changes. It is emphasized that these comments are not anticipated to impact the timeline for potential approval by the regulatory body. Noteworthy participants in the quest to introduce spot bitcoin ETFs in the U.S., including BlackRock, Grayscale, and Fidelity, disclosed their expected fees in filings on the preceding Monday.

Bloomberg Intelligence analyst James Seyffart, closely monitoring the bitcoin ETF applications, remarked via Twitter that receiving feedback from the SEC on amended filings within the same day is “borderline unheard of.”

The comments made on Monday indicate that SEC officials are actively engaged in ongoing discussions with the potential ETF issuers. Most of these issuers initially proposed the creation of spot bitcoin ETFs in the previous summer. The SEC faces a critical deadline of January 10, 2024 – this Wednesday – for one of the applications, specifically submitted by Ark and 21 Shares.

A series of amended filings by issuers, reflecting their dialogues with SEC officials in recent weeks, has sparked optimism that the agency might approve spot bitcoin ETFs for trading in the U.S. This optimism was further fueled when exchanges such as Nasdaq, NYSE Arca, and Cboe BZX filed amended 19b-4 documents on the preceding Friday. Another source, as told to CoinDesk last week, revealed that these filings were intended to align with the S-1 submissions.

Both 19b-4 and S-1 filings must be deemed effective by the SEC before an ETF can commence trading.

Advocates for Bitcoin ETFs are hopeful that a regulated financial product will provide traditional financial institutions and everyday retail investors with exposure to the price of the world’s oldest cryptocurrency, without the need to set up wallets or navigate new financial structures. The SEC has consistently rejected every application for a spot bitcoin ETF since 2013.

While the agency has not publicly signaled its stance on the latest batch of applications, the substantial feedback provided, the amended filings, and the speed of the regulatory responses all suggest that the nearly dozen applications are on track for approval.