McClurg mentioned that he expects the U.S. Securities and Alternate Fee (SEC) to ship a second request for feedback to varied spot Bitcoin ETF candidates within the coming weeks. The SEC beforehand requested feedback beginning on the end of September. Valkyrie reportedly submitted an replace to its personal submitting this week.
The CIO mentioned that after the SEC sends out these new requests, it may approve the mandatory 19b-4 filings on the finish of November. These filings concern the proposed rule adjustments that may permit exchanges to listing the spot Bitcoin (BTC) ETFs in query.
McClurg mentioned that this approval timeline “doubtless means a February launch” in 2024, because the SEC may ask companies so as to add extra particulars to different S-1 filings earlier than any last launch.
Bitwise is “hopeful;” expects $50B over 5 years
ETF.com additionally obtained a press release from Bitwise CIO Matt Hougan, who mentioned that he’s “hopeful” about his firm’s plans to launch a spot Bitcoin ETF.
Hougan commented on sure points, noting that “market manipulation remains to be a possible stumbling block” and famous that “custody isn’t [necessarily] a wrap.”
Although different candidates have tried to deal with points round market manipulation by introducing surveillance-sharing agreements, particularly with Coinbase, Bitwise is much less optimistic on the matter. Hougan made similar statements when Bitwise up to date its submitting in late September, suggesting that such agreements could not meet necessities.
Each executives additionally supplied estimates relating to the quantity of worth that the pending funds may entice. McClurg projected $10 billion of demand for spot Bitcoin ETFs within the 4 to eight weeks after they launch. In the meantime, Hougan projected greater than $50 billion of inflows over 5 years, weighted towards the later years.
Different ETF candidates are additionally driving expectations
Valkyrie Investments and Bitwise are amongst roughly ten companies within the working to supply the primary spot Bitcoin exchange-traded funds within the U.S.
The most recent batch of proposals was largely prompted by the main asset supervisor BlackRock, which submitted its spot Bitcoin ETF utility on June 15. A number of different hopeful asset managers have patterned their very own purposes after BlackRock’s.
Elsewhere, Grayscale has attracted optimism by way of a legal victory that can compel the SEC to assessment its ETF utility. Nonetheless, Grayscale’s plan entails changing its present GBTC fund to an ETF and is sort of completely different from most different pending purposes.