The procedure consists of two primary elements: the submission of 19b-4 by exchanges such as NYSE, Nasdaq, and Cboe, which notifies the SEC of proposed adjustments to regulations and a deadline of January 10 for the Ark/21Shares Bitcoin Trust, and the endorsement of S-1 submissions, which are particular to each corporation seeking approval for a bitcoin ETF spot. It is foreseen that the SEC will initially ratify the 19b-4 submissions, followed by individual approvals for S-1 petitions.
Among the 13 firms vying for a Bitcoin ETF, the focus has shifted to fee arrangements. Fidelity’s Wise Origin Bitcoin Fund, Invesco’s Galaxy Bitcoin ETF, Ark/21Shares, and Valkyrie have divulged varying basis points for their charges, while Grayscale Bitcoin Trust has pledged to lower fees once its ETF application is sanctioned.
*BLACKROCK AND GRAYSCALE PREPARE FOR #BITCOIN ETF MARKET ENTRY AS SEC VERDICT APPROACHEShttps://t.co/ugeG3bA8UL
— Investing.com (@Investingcom) January 7, 2024
The regulatory environment is underscored by the sustained disputes between SEC Chair Gary Gensler and the crypto sector. Legal milestones, such as the SEC’s defeat against Grayscale last summer, underscore the regulatory hurdle. While Bitcoin is categorized as a commodity, the regulatory status of other cryptocurrencies remains uncertain, prompting the SEC to utilize enforcement actions to establish dominance.
Ongoing legal disputes involving major exchanges like Coinbase and Binance further accentuate the SEC’s assertive posture. As the digital currency community eagerly observes the SEC’s ruling on bitcoin ETFs, the potential influence on the sector is acknowledged, with the expectation that a favorable outcome will open the door to fresh prospects and advancements in digital currency investment.
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