Investment management companies and stock exchanges discussed with the U.S. Securities and Exchange Commission the final changes to the wording of applications for investment funds directly traded in “Bitcoin,” which could lead to the approval of allowing funds for the first time, next week.
Exporters held talks with officials from the Securities and Exchange Commission regarding the filing documents that each exchange-traded fund must submit for approval, according to executives and representatives of five companies who declined to reveal their identities due to the confidentiality of the ongoing discussions, as reported by Reuters.
Many informants stated that they expect to receive the final approval for the deposits by Tuesday or Wednesday of next week.
The Securities and Exchange Commission has initiated what three sources have described as “simple” changes. It is expected that some asset managers will adjust their records to disclose the fees or identities of market makers for their exchange-traded funds. Sources familiar with the process indicated that these updates are expected to be published by Monday morning.
Since 2013, many asset managers have requested permission to launch Bitcoin investment funds on the stock exchange, but the Securities and Exchange Authority rejected them, arguing that the products would be susceptible to market manipulation. Fourteen companies, including “BlackRock,” “Fidelity,” and “WisdomTree,” submitted applications to obtain Bitcoin investment funds last year and are awaiting a decision from the Securities and Exchange Authority.
In an unusual step described by three sources, the Securities and Exchange Commission has asked issuers planning to launch it next week to also prepare written requests to accelerate the effective date of these tradable investment funds. The normal procedure involves regulators informally discussing with issuers the appropriate timing.
According to Bloomberg, it is expected that the commissioners of the Securities and Exchange Commission will vote on changes to rule 19b-4 next week. A Reuters source reported that the vote is likely to take place on Wednesday.
On Tuesday, the cryptocurrency Bitcoin exceeded $45,000 before falling back to around $44,000, marking the first time since April 2022 that the new year starts with strength supported by optimism about the possible approval of Bitcoin fund trading on immediate exchanges.
The digital currency Bitcoin reached its highest level in 21 months, reaching $45,922, after having increased 156% last year in its best annual performance since 2020. However, Bitcoin is still far from its all-time high of $69,000 recorded in November 2021.
Investor focus is on whether the US Securities and Exchange Commission will soon approve exchange-traded funds that directly deal with Bitcoin. This would open the market to millions of other investors and attract billions of dollars in investments.
In recent years, the commission has denied multiple requests to launch these types of funds, citing concerns about market manipulation in the cryptocurrency industry.
However, in recent months, increasingly evident signs have emerged that regulatory entities are at least willing to approve some of the 13 “bitcoin” funds traded on the market, with expectations that the decision will probably be made in early January.
