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BlackRock, Bitwise File Updated Spot Bitcoin ETF Applications

BlackRock, Bitwise File Updated Spot Bitcoin ETF Applications

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Asset management behemoth BlackRock updated its S-1 filings for its spot Bitcoin ETF application with the Securities and Exchange Commission on Monday. 

Following BlackRock’s updated filing, Bitwise also filed an updated S-1 filing with the SEC. 

Negotiations Ongoing 

The United States Securities and Exchange Commission (SEC) is yet to approve a spot Bitcoin ETF. In fact, the regulator has delayed all the applications it has received so far. However, Bloomberg analysts have stated that updated filings by BlackRock and Bitwise are good indications that negotiations between the parties are ongoing. Bloomberg Intelligence analyst James Seyffart stated in a post on X, 

“They’re just pouring in. We have another spot: #Bitcoin BTC +0.53% ETF S-1 (prospectus) amendment tonight. This one is from @BlackRock. SEC is obviously giving multiple issuers the same or very similar instructions. What does this mean? Without having read them -- it just means that the wheel is still turning. Both the SEC and these issuers are working hard to iron things out. These filings are likely the result of many conversations and a lot of man hours on/between both sides.”

The Updated Filings 

The Securities and Exchange Commission requires that the cash method, a spot ETF application similar to futures transactions, be preferred for applications to be accepted. On the other hand, ETF applicants are insisting on the in-kind method that holds Bitcoin directly. Analysts at Bloomberg believe there is a 90% chance that Bitcoin spot ETFs will be approved by the 10th of January. Recent postponements and developments have indicated that Bitcoin spot ETF decisions will be made collectively by the Securities and Exchange Commission. 

The updated filing by BlackRock includes new language about the trust administrator’s efforts to monitor any unusual price movements. The filings also added updated language about anti-money laundering compliance and also included an audited statement from PricewaterhouseCoopers. The updated filing stated, 

“The Sponsor and the Trust will only interact with known third-party service providers with respect to whom the Sponsor or its affiliates have engaged in a due diligence process to ensure a thorough KYC process, such as the Authorized Participants, Market Makers, Prime Broker, and Bitcoin Custodian.”

Bitcoin Price Rally 

Meanwhile, the price of Bitcoin has surged as speculation mounts that the Securities and Exchange Commission is getting ready to approve a spot ETF. Bitcoin has seen an increase of over 20% in the past one month, with its price crossing the $40,000 mark on the 4th of December. Currently, the cryptocurrency is trading just under the $42,000 mark.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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