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Bitcoin ETF application updated one day before deadline

In a longer-than-usual move, the U.S. Securities and Exchange Commission (SEC) is once again commenting on an update to a form recently filed by companies requesting authorization to launch a Bitcoin (BTC) ETF.

Let us remember that yesterday, CriptoNoticias reported that 7 companies proposed Update your S-1 and S-3 forms Relevant to the service fees these ETFs charge their clients.

Bloomberg Intelligence hedge fund expert James Seyffart comfirmed That SEC left comments on these forms And said that today, January 9, new amendments should be proposed.

That’s how it happened. At the time of this publication, Companies including BlackRock, VanEck, ARK, Grayscale, Fidelity, Widsom Tree, Valkyrie, Invesco, Franklin Templeton and Bitwise have submitted amendments.

Changes shown in the tables include warnings to investors about potential liquidity issues and the risk of counterparty insolvency (making it clear that owning shares in a Bitcoin ETF is not the same as actually owning Bitcoin).

For example, you can read in BlackRock’s ETF application:

“If the Custodian Agreement, Lead Execution Agent Agreement, Authorized Participant Agreement or Bitcoin Business Counterparty Agreement is terminated or the Bitcoin Custodian, Lead Execution Agent, Authorized Participant or Bitcoin Business Counterparty does not provide necessary services, The Trustee may need to find and appoint a replacement custodian, executive agent, authorized participant or Bitcoin counterparty, which may pose challenges to the Trust’s custody of Bitcoin, the Trust’s ability to create and redeem shares, and the Trust’s ability to continue Trust in operations may be adversely affected.

Excerpted from BlackRock ETF Apply for i SHARES® BITCOIN TRUST

“I don’t think it’s necessarily a sign of delay,” Seifert said of the amendments. “And it shouldn’t be, because The SEC has until tomorrow (January 10, 2024) to publicly rule for or against the ETF jointly proposed by ARK and 21Shares. The SEC can also approve multiple applications on the same day, which makes sense to prevent any one company from being favored over others.

Sefat expressed surprise at this unusual phenomenon:

“It’s almost unheard of to send a filing to the SEC in the morning and receive comments the same day. “If they wanted to delay, broadcasters wouldn’t have received comments tonight. “

James Seyffart, investment fund expert.

While all this is happening, the digital currency’s price remains close to its highest level in nearly two years, a day after the potential approval of a U.S. spot Bitcoin ETF. As of the time of publication, as shown in the CriptoNoticias price calculator, Each BTC is trading at $46,560.


Updated January 9, 2024:
2:00 PM (UTC): ARK is understood to have also submitted amendments to its application.
– 2:27 pm (UTC): Grayscale is also understood to have submitted amendments to its application.
– 3:20 pm (UTC) Fidelity, Bitwise, Franklin Templeton, Valkyrie, Widsom Tree and Invesco have also reportedly submitted revisions to their applications.

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