Yesterday, an important meeting took place between the Nasdaq and the US Securities and Exchange Commission (SEC). The purpose of this meeting? Discuss Bitcoin spot ETFs, a hot topic in the world of finance and cryptocurrency The Nasdaq had already submitted its 19b-4 application for BlackRock’s iShares Bitcoin Trust during the summer, marking a significant step forward in the field of Bitcoin ETFs.
Anticipation and Implications
The anticipation for a spot Bitcoin ETF in the United States is high, notably because a SEC decision is expected on January 10th regarding one of the applications, that of ARK 21Shares Bitcoin ETF. The details regarding the model for creating and buying back ETFs, whether in cash or in kind, are particularly at the heart of the discussions.
Meetings have been held between SEC staff, exchanges wishing to list these products (NYSE, Nasdaq, Cboe Global Markets) and potential issuers. These meetings are considered as indicators of an upcoming approval by Bloomberg analysts.
The Impact on the Bitcoin Market
Curiously, the price of Bitcoin fell to $42,000 on Wednesday, after reaching a 21-month high at $45,500 the day before. This drop was attributed by some to an article from Matrixport suggesting that Bitcoin ETFs would be rejected by the SEC, blocking an inflow of institutional capital.
What about the Creations in Cash and Nature?
A key point of these discussions concerns the model for creating ETFs, whether in cash or in kind. BlackRock and Grayscale argued before the SEC to allow in-kind creation, arguing that it would offer more protection to investors and track underlying assets more closely.
The SEC’s decision, expected on January 10th, could mark a turning point in the history of Bitcoin ETFs and have a significant impact on the cryptocurrency market. The implications of approval or rejection are vast, both for institutional investors and for the Bitcoin market in general.
