SEC recently required Bitcoin spot ETF issuers to submit the final amended S-1 by January 29th and confirm the underwriters’ information. Earlier today, including BlackRock and Fidelity, nine issuers have already submitted the revised S-1 forms.
The market is currently optimistic that the U.S. Securities and Exchange Commission (SEC) will approve the first round of Bitcoin spot ETFs before January 10, 2024. Bloomberg analyst Eric Balchunas recently commented that the key to obtaining SEC approval for BTC spot ETF lies in multiple issuers, such as BlackRock and Fidelity, submitting amended S-1 forms.
Several issuers have already submitted the amended S-1 forms for Bitcoin spot ETFs to the SEC, disclosing the authorized underwriters (AP) information. The following is a summary for readers:
– BlackRock: Designated Jane Street Capital and JPMorgan as its AP and confirmed the use of cash redemption model.
– Fidelity: Designated Jane Street as its AP, with a total expense ratio as low as 0.39%, the lowest among all issuers.
– Valkyrie: Designated Jane Street and Cantor Fitzgerald as AP, with a total expense ratio set at 0.8%.
– WisdomTree: Also designated Jane Street as its AP.
– Franklin Templeton: Did not explicitly specify its AP, only stated that the list of APs can be obtained from the manager or agent.
– Invesco/Galaxy: Designated Virtu and JPMorgan as AP, exempting fees for the first 6 months.
– VanEck: Confirmed the use of cash redemption model but did not specify detailed AP information.
– Bitwise: Did not disclose AP information or fee ratios, but revealed that someone has invested $200 million in BITB.
It is worth noting that yesterday, Ark/21Shares was the first to submit the amended S-1, but did not disclose AP information. VanEck and Bitwise also did not disclose underwriter information in their latest submitted S-1 forms, and it is uncertain whether it will affect their future approval by the SEC.
Note: AP is a key entity in the primary market of ETFs that directly subscribes or redeems ETF shares from the issuer, usually large banks or institutions.
Grayscale, which is actively working on converting its Bitcoin Trust Fund (GBTC) into a Bitcoin spot ETF, has designated Jane Street and Virtu as its underwriters.
Furthermore, Grayscale’s CEO Michael Sonnenshein tweeted earlier today that Grayscale designated Jane Street and Virtu as its AP as early as 2017.
It is expected that the market will eagerly await whether the SEC will approve the first batch of Bitcoin spot ETFs as expected before January 10th. If it comes true, whether it will significantly boost the Bitcoin price and create a similar bullish market as the Bitcoin futures ETF approval in 2021 is worth our continuous attention.