Bitcoin ETF Looks Very Likely Given These Bureaucratic SEC Steps

Let's address the topic the crypto industry is obsessed with: I believe there is a 98% chance that a spot bitcoin ETF will be approved in the U.S. by Jan. 10.
Recent developments support that. The Securities and Exchange Commission has been meeting with potential issuers of these ETFs, even during the busy holiday season, to straighten up the final details, structure the creation and redemption procedure and guide issuers to incorporate the latest changes into their revised S-1 filings. BlackRock just filed its fourth amendment to its application with the SEC on Dec. 23 and is expecting to seed its bitcoin ETF with $10 million on Jan. 3. You're reading Crypto Long & Short, our weekly newsletter featuring insights, news and analysis for the professional investor. Sign up here to get it in your inbox every Wednesday.
Of course, seeding the ETF shell does not necessarily mean launch.But Fox Business reported that final amendments to all spot bitcoin ETF applications must be done by Dec. 29: “The applications that are fully furnished and filed by Friday will be considered in the first wave.”
The following indicates the SEC timetable of 13 prospective issuers: The SEC has requested that issuers have their authorized participant agreement – describing who will play the key role of creating and redeeming ETF shares – available in the coming days. Authorized participants are a central part of the ETF business, but this job will be a particularly tough one, with bitcoin ETF APs needing basic knowledge of digital assets and the ability to provide safekeeping and custody, conduct due diligence for anti-money-laundering and know-your-customer purposes, ensure compliance with sanctions regulations, deal and place crypto asset orders on behalf of clients, and so on. Not many traditional brokerages are well-equipped to do this.