In a swift move that surprised industry experts, the U.S. Securities and Exchange Commission (SEC) expedited its review process for applications of several hopeful spot Bitcoin exchange-traded funds (ETFs). The urgency in the SEC's actions came as it worked against a looming Wednesday deadline, with the regulator providing feedback on submissions within the same day, a pace considered "borderline unheard of" by market observers.
The SEC had set Monday morning as the deadline for these Bitcoin ETF issuers to file their necessary documents. Contrary to its usual practice, where it may take several days to respond to such filings, the SEC reviewed and responded to the applications on the same day. James Seyffart, an ETF analyst at Bloomberg Intelligence, remarked on the unprecedented speed of the SEC's feedback, emphasizing the rarity of such a quick turnaround.
Adding to Seyffart's observation, finance lawyer Scott Johnsson noted the extraordinary nature of this rapid review process. He pointed out that the speed of the SEC's feedback suggests a concerted effort to facilitate quick approvals and launch of these ETFs, contrasting sharply with the slower pace seen with futures ETFs in the past.
Applicants who received the SEC's comments on Monday are expected to submit their revised documents by Tuesday. The changes required are minor and pertain to details in the S-1 forms submitted. These revisions are unlikely to affect the timeline for the potential approval of the ETFs.
This accelerated process indicates ongoing discussions between the SEC and the ETF hopefuls, many of whom had submitted their proposals earlier in the summer. Johnsson clarified that the SEC's 21-day comment period on the 19b-4 filings isn't a mandatory duration like those following a second delay, which are required under statute.
The SEC's approval of both the 19b-4 and S-1 filings is necessary before any Bitcoin ETF can commence trading. This development comes at a time when Bitcoin is experiencing a positive trend in the market. As of early Tuesday morning, Bitcoin was trading at $46,598.87, marking a 6.33% increase on the day and a 2.74% gain over the past week. The cryptocurrency's trading volume surged by 68.85% to $40,976,620,644, with its market cap reaching $912,764,738,105, according to data from CoinMarketCap.
The SEC's rapid response and ongoing dialogue with ETF issuers reflect a significant moment in the evolving landscape of cryptocurrency regulation and investment products. As the world's leading cryptocurrency shows strong market performance, the SEC's actions could pave the way for new investment opportunities in the digital asset space.
