While the SEC has yet to greenlight any spot ETF applications, the new filings lend further credence to the likelihood of a spot Bitcoin ETF approval soon.
Investment manager BlackRock has revised its application for a spot Bitcoin ETF approval with the US Securities and Exchange Commission (SEC). The revision comes on the heels of rumors that investment companies seeking Spot ETF approval would update their S-1 filings in response to SEC comments
The new BlackRock filing reveals the company has received seed funding of $100,000 for its proposed Bitcoin (BTC) exchange-traded fund, iShares Bitcoin Trust. The unnamed investor agreed to purchase shares worth $100,000 at a unit price of $25 per share. Consequently, the investor took delivery of 4,000 shares on October 27, 2023.
Just last month, Bloomberg analyst Eric Balchunas and Van Buren Capital investor Scott Johnsson suggested that BlackRock may be seeding its application personally. They based their conclusion on the company’s last filing, noting it suggests a great deal of confidence in the potential of a spot Bitcoin ETF.
While the SEC has yet to greenlight any spot ETF applications, the new filings lend further credence to the likelihood of a spot Bitcoin ETF approval soon. BlackRock certainly believes this too and has obtained a ‘CUSIP number for its spot ETF.
New Applications Suggest Close Communication and Imminent Approval
It wasn’t just BlackRock that unveiled their latest S-1 filing. Bitwise also submitted an updated proposal for its spot Bitcoin ETF. Bloomberg analyst James Seyffart suggests these are proofs of ongoing communication between the regulator and the investment firms.
“Wheels are still turning behind the scenes between SEC and potential spot Bitcoin ETF issuers,” Seyffart stated.
Seyffart is one of a few analysts who believe that approval orders are likely to come by January 10. Together with Balchunas, the duo believes the approvals are likely to come in at the same time. However, Balchunas noted it is unclear whether the Grayscale GBTC fund will be converted to a spot ETF along with the approval for other asset managers.
Spot Bitcoin ETF Approval to Increase Institutional Capital in Crypto
Whatever the case, approval is expected to cause a major inflow of institutional capital into the cryptocurrency sector. Brian Dixon from Off The Chain Capital expects an increase in resource allocation within 30-45 days of the ETFs becoming operational.
“You’ll probably see a short-term increase and then a drawdown,” Dixon explained. “But then, when they become operational, that’s when we’ll see the much larger increase.”