The Final Bitcoin ETF S-1 Filing Will Be Due Next Monday

Key Points:

• Bloomberg analysts say Bitcoin spot ETF approval is near, with the final Bitcoin ETF S-1 filing expected next Monday.
• Major firms, including BlackRock and Fidelity, advance toward SEC approval with amended forms for ETF rule changes.

In a significant development, Bloomberg analyst Eric Balchunas revealed that the approval process for the Bitcoin spot ETF is nearing completion. He stated that the final Bitcoin ETF S-1 filing is expected at 8 a.m. next Monday, with the U.S. Securities and Exchange Commission (SEC) diligently preparing for the January 11 launch.

Major asset management firms, including BlackRock, ARK/21 Shares, VanEck, Bitwise, Hashdex, WisdomTree, Franklin Templeton, Fidelity, Valkyrie, and Grayscale, have filed amended Forms 19b-4, a crucial step closer to potential SEC approval. These filings propose rule changes on stock exchanges to accommodate the ETFs, following weeks of discussions between the SEC and ETF issuers.

Bloomberg analyst James Seyffart reported that 11 Bitcoin spot ETF applicants, including Grayscale looking to convert its Bitcoin Trust, have submitted revised 19b-4 documents. Approval for these documents is expected next week, along with the anticipated effectiveness of the Bitcoin ETF S-1 filing simultaneously. Seyffart personally anticipates the SEC approving all 11 applications at once.

According to Bloomberg, the SEC has instructed exchanges and issuers to submit amended filings, and sources suggest a vote on the rule change documents will occur next week. Once approved, only the amended S-1 prospectus documents need SEC approval before ETF trading commences. Reuters reported that several Bitcoin spot ETF issuers expect final Bitcoin ETF S-1 filing approval by late Tuesday or Wednesday.

In recent developments, major issuers like BlackRock Inc. and Fidelity updated their S-1 filings, specifying authorized participants responsible for creating and redeeming ETF shares. Furthermore, issuers shifted to cash redemptions in their S-1 filings last month, a move generally deemed safer by the SEC, involving converting bitcoin back into cash before distribution to traders—a practice prevalent in the broader ETF industry and among Bitcoin futures ETFs.