Wed. May 22nd, 2024
SEC
  • Despite a Twitter mishap, the SEC signals a decision on spot bitcoin ETFs today.
  • Timing remains uncertain, with expectations ranging from late afternoon to after market close.
  • Approval involves the 19b-4 and S-1 forms, with S-1 forms potentially appearing first for an even market launch.
  • A breached SEC tweet stirs chaos, but the regulatory body vows to investigate the security breach.
  • Speculation arises about fee reductions among ETF issuers ahead of potential approval.

The Approval Process:

The SEC’s meticulous planning for a spot bitcoin ETF was disrupted by a fake tweet, but expectations persist for approvals tonight. Industry experts anticipate a formal announcement between 4-6 pm ET, coinciding with the Kentucky Derby.

Unpacking the Approval:

The SEC must approve 19b-4 forms and S-1 forms to initiate trading. The 19b-4 form signals ETF approval, while the S-1 form’s effectiveness removes disclaimers, allowing trading to commence. Issuers express readiness for immediate trading upon approval.

Strategic Timing:

Analysts speculate on the strategic release of S-1 forms before 19b-4 forms to level the playing field. Concerns arise that approving 19b-4 forms first may favor Grayscale, which already has an effective fund.

Tweet Turmoil:

A hacked SEC tweet falsely claimed approval, triggering confusion. The SEC pledges to work with law enforcement to investigate the breach. The incident raises concerns of potential delays or withholding approval for spot bitcoin ETFs.

Fee Adjustments:

As approval looms, prospective ETF issuers, including BlackRock and Ark Invest/21Shares, cut fees to attract investors. BlackRock reduces sponsor fees and temporary discounts, while Ark Invest/21Shares lowers fees and maintains zero fees for the first six months or until $1 billion in assets.

Conclusion:

Amidst uncertainties and challenges, the crypto community awaits the SEC’s official decision on spot bitcoin ETFs, closely monitoring developments and potential market impacts. Stay tuned for the latest updates!

By Julia

Related Post