Spot Bitcoin ETF Close to Being Approved by SEC

Alex Dovbnya

The U.S. SEC approval for a Bitcoin ETF has become a tantalizing reality

The race for the coveted approval of a spot Bitcoin exchange-traded funds by the U.S. Securities and Exchange Commission (SEC) is heating up. Jake Chervinsky, chief policy officer at Blockchain Association, says that “all signs point toward SEC approval for bitcoin spot ETFs.”

ARK’s ETF filing updates

According to recent posts by Eric Balchunas, ARK Investment Management has made significant updates to its spot Bitcoin ETF prospectus. The SEC, a few weeks prior, had shared feedback with various issuers about their S-1 filings, prompting revisions. ARK appears to have addressed these concerns, particularly regarding Net Asset Value (NAV) calculations which the SEC had commented upon. 

Notably, the updated prospectus highlights that the NAV calculation doesn’t comply with the Generally Accepted Accounting Principles (GAAP). Furthermore, ARK has clarified that the Trust’s assets with their Custodian are stored in segregated Bitcoin blockchain accounts, or “wallets”, ensuring they are not mixed with corporate or other customer assets. 

These revisions are seen as a positive step toward SEC approval, Balchunas emphasized that there might be further discussions required with the SEC on these intricate details.

Surging ETF odds

The recent court ruling favoring Grayscale against the SEC has bolstered optimism for spot Bitcoin ETF approvals, with analysts predicting a 75% chance this year and 95% by the end of 2024.

BlackRock, the world’s largest asset manager, as well as other financial juggernauts of the likes of Fidelity, WisdomTree, VanEck, and Invesco/Galaxy also pushing for their respective ETFs and showcase the immense interest and competition in this space. 

However, caution remains as the SEC still holds the power to delay its decision, especially given the recent nature of Grayscale’s legal victory.

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Alex Dovbnya