Major asset management firms including BlackRock, Cathie Wood’s ARK Invest, and WisdomTree have recently updated their filings with the U.S. Securities and Exchange Commission (SEC) for proposed spot Bitcoin exchange-traded funds (ETFs). These amendments align with the SEC’s preference for a cash redemption model over the in-kind process, which would involve non-monetary assets like Bitcoin.
On December 18, these firms filed significant amendments to their S-1 registration statements. These changes indicate a strategic shift to prioritize cash transactions, a move seen as essential for gaining regulatory approval. ARK Invest’s revised filing for its ARK 21Shares Bitcoin ETF suggests a focus on cash creations and redemptions. However, the filing leaves room for potential in-kind transactions, subject to regulatory approval. BlackRock’s iShares Bitcoin Trust ETF update mirrors this approach, explicitly stating the possibility of in-kind transactions but only with the necessary regulatory nod.
Bloomberg ETF analyst Eric Balchunas highlighted the significance of these updates, noting that ARK and 21Shares initially resisted a cash-only model. This change in stance signals the industry’s acknowledgment of the SEC’s firm regulatory requirements.
Furthermore, WisdomTree’s update to its WisdomTree Bitcoin ETF maintains the option for in-kind creation and redemption. This move by WisdomTree, alongside the amendments by BlackRock and ARK, reflects a broader industry trend towards regulatory compliance. Such compliance is crucial for the approval of spot Bitcoin ETFs in the U.S. market, a long-awaited development by many in the cryptocurrency sector.
Financial experts view these amendments as a practical response to the SEC’s guidelines. The emphasis on cash transactions is seen as a method to ensure transparency in the sourcing of Bitcoin assets for these ETFs. This approach is intended to prevent issues related to the origins and traceability of Bitcoin assets involved in ETF transactions.
In summary, these recent filings by leading asset managers mark a significant step towards aligning with SEC’s requirements. This alignment could potentially pave the way for the approval of the first spot Bitcoin ETFs in the United States, a development eagerly anticipated by the cryptocurrency community.