Analysts are closely watching the developments surrounding the approval of the first Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC). Late Friday, filings began to move forward, with Bloomberg Analyst James Seyffart noting on Twitter that BlackRock's $19 billion 19B-4 amendment had been filed. According to Seyffart, there are expected to be a total of 11 filings submitted that evening. By 6 p.m. ET on Friday, all of the Bitcoin ETFs had indeed filed their 19B-4 forms with the SEC.
What is a 19B-4 form and why is it important?
A 19B-4 form is filed with the SEC by organizations such as stock exchanges or investment firms to propose rule changes. This form provides details on the changes being proposed and the reasons behind them. It undergoes a public review and awaits SEC approval. The fact that all of the Bitcoin ETFs have filed their 19B-4 forms indicates that they are progressing through the necessary regulatory channels.
The SEC's involvement in the process
According to Bloomberg Senior ETF Analyst Eric Balchunas, the SEC has been actively working with the issuers on their 19B-4 forms. Balchunas mentioned during an earlier interview with Rug Radio that there has been a back-and-forth between the SEC and the issuers, resulting in updates to the S-1 forms. However, the edits made to the 19B-4 forms have been sent directly to the SEC and have not required the issuers to refile.
Balchunas suggests that once the SEC begins approving Bitcoin ETFs, the asset class could see significant growth. He predicts that in the short term, the asset class could be worth billions, potentially around $10 billion in the first year. In the medium term, he envisions the value reaching between $30 billion and $50 billion over three years. Ultimately, Balchunas believes that Bitcoin ETFs could settle at a similar market value as gold, which currently stands at approximately $100 billion over five to ten years.
High-profile investment companies driving optimism
Balchunas' optimism is fueled by the number of high-profile investment companies that have filed Bitcoin ETF applications with the SEC. Notably, BlackRock, the largest investment firm in the world, has joined the fray by submitting its application. This entry into the Bitcoin ETF space by such a prominent player has increased confidence in the potential success of these investment products.
Overall, the anticipation surrounding the approval of Bitcoin ETFs by the SEC is growing as more filings are submitted. Analysts are closely monitoring the developments and speculating on the potential value of the asset class once approval is granted. The involvement of well-established investment companies like BlackRock adds credibility and further bolsters the optimism surrounding Bitcoin ETFs. As we await the SEC's decision, the financial world eagerly anticipates the potential impact these investment products could have on the cryptocurrency market.
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