The Latest on Spot Bitcoin ETFs? ETF Analyst Shares Updates!

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• The broad crypto community, especially as the decision date approaches, eagerly anticipates the approval of the U.S. Securities and Exchange Commission’s (SEC) spot Bitcoin ETF.
• Seyffart recently announced that the SEC has a narrow window to either approve or reject a series of Bitcoin spot ETFs in the United States.
• In response to Seyffart’s post, Balchunas stated that they should expect more S-1 filing changes this week.

While the crypto community maintains expectations for spot Bitcoin ETFs, renowned ETF analysts have shared information about the current situation.

Current Status of Spot Bitcoin ETF Excitement

The broad crypto community, especially as the decision date approaches, eagerly anticipates the approval of the U.S. Securities and Exchange Commission’s (SEC) spot Bitcoin ETF. Eric Balchunas and James Seyffart, ETF analysts at Bloomberg, have been prominent figures in discussions about the decisions regarding a series of spot Bitcoin ETF applications by the SEC. Both predicted a 90% likelihood of approval for the new product.

Seyffart recently announced that the SEC has a narrow window to either approve or reject a series of Bitcoin spot ETFs in the United States. He specified that this window is currently between January 5 and January 10, 2024, indicating that approval could come before or during that week.

In response to Seyffart’s post, Balchunas stated that they should expect more S-1 filing changes this week. Meanwhile, the analyst confirmed that there would be no updated 19b-4s due to the regulator requesting all potential Bitcoin ETF issuers to submit them offline. Hashdex, a crypto asset management company, was one of the latest companies to update its 19b-4 application with the SEC.

BTC ETF Redemption Models

There is also the topic of potential ETF redemption models. In particular, the institution’s Trading and Markets division held a meeting with some participants who applied for the spot Bitcoin ETF proposal. In a meeting with the SEC, BlackRock discussed a “cash create” model summary or an “in-kind” redemption model option for the upcoming ETF proposal.

Applicants like BlackRock seem to prefer the ‘in-kind’ model, providing the cleanest structure for the asset manager and end investors. Balchunas noted rumors suggesting that only cash creation would be allowed in the first group. If the rumors prove accurate and BlackRock sticks with the ‘in-kind’ redemption model preference, there is a high chance that the asset manager will miss out on the first group.

Additionally, despite Grayscale updating its application, it is uncertain whether it will be allowed to convert its GBTC into an ETF in the first group. Expectations continue to accumulate regardless of the SEC’s decision.