Bloomberg's ETF expert Eric Balchunas announced his predictions regarding the developments in the Bitcoin Spot ETF next week.
Balchunas is awaiting updated S-1 filings this week, which are expected to address the SEC's second round of comments. As Bitcoinsistemi.com reported, minutes ago BlackRock submitted its updated S-1 filing to the SEC.
SEC Form S-1 is defined as the initial registration form for new securities required by the SEC for US-based public companies. Any securities that meet the criteria must have an S-1 filing before the shares can be listed on a national exchange, such as the New York Stock Exchange.
SEC Form 19b-4 is used by self-regulatory organizations (SROs) to file a rule change with the SEC. Many exchanges and financial regulatory bodies are SROs and as such their charters, rules, and regulations must be filed with the SEC for public record keeping.
In his statement, Balchunas stated that it was rumored that this week's comments would be comprehensive and possibly final. However, updated 19b-4s are not expected as the SEC is asking applicants to return them offline for now. These are expected to be refiled just before the approval date, according to the analyst.
Balchunas noted that industry buzz is about whether the SEC will allow in-kind filings. Rumors suggest that only cash applications will be allowed in the first grouping, according to the analyst. Many applicants are prepared for both scenarios. If BlackRock beats the SEC, most companies will opt for the in-kind method. Otherwise, they will resort to the cash method to launch their products.
In the in-kind method, authorized participants provide Bitcoin to the ETF issuer in exchange for new ETF units. This allows investors to redeem ETF shares in exchange for physical Bitcoin rather than a cash equivalent, providing direct exposure to cryptocurrencies without the custodial institution.
In the cash method, authorized participants provide cash to the ETF issuer in exchange for new ETF units. The SEC has reportedly instructed spot Bitcoin ETF applicants to amend their applications and use cash instead of the in-kind method.
Following Balchunas' comments, Bloomberg crypto analyst James Seyffart confirmed that discussions are still ongoing between the SEC and potential issuers. He cited Bitwise's second S-1 amendment for its spot Bitcoin ETF, which came a few hours ago, as evidence of these ongoing talks.
*This is not investment advice.
