Attention in crypto markets is firmly focused on spot bitcoin ETF applications by various asset managers, which are awaiting approval from the U.S. Securities and Exchange Commission (SEC).
There are 14 investment managers hoping to win SEC approval for their proposed products, although it is not known if or when this will happen. But towards the end of December, some firms updated their applications.
By Dec. 29, BlackRock Asset Management, VanEck, Valkyrie Investments, Bitwise Investment Advisers, Invesco Ltd., Fidelity, WisdomTree Investments and a joint venture between Ark Investments and 21Shares had all submitted new documents with details of the arrangements each had made with their market makers to ensure trading is liquid and efficient.
BlackRock had earlier in December updated its filing to allow cash redemptions.
Jan. 10 – next Wednesday – has emerged as a key date, as that’s when the SEC is due to decide whether to approve or reject the joint proposal from ARK and 21Shares. Issuers expect the SEC to approve several applications at the same time.
People familiar with the filing process told Reuters that issuers which had met their deadlines for filing revisions by the end of the year could be able to launch by Jan. 10. Issuers that have been cleared to launch then might be told as soon as Tuesday or Wednesday (today), the sources said.
Hopes that a spot bitcoin ETF being approved would unleash a wave of new bitcoin-buying played a big role in the cryptocurrency’s 156% gains last year, and it’s recently gone up even further. Bitcoin hit $45,922 on Tuesday, which was its highest since April 2022.
Meanwhile, prosecutors have decided against a second trial for Sam Bankman-Fried, the FTX founder who was convicted on seven counts of fraud and conspiracy in November.
He was set to face another trial in March on a second set of charges – which include campaign finance violations, conspiracy to commit foreign bribery and conspiracy to operate an unlicensed money transmitting business – but U.S. prosecutors now say this won’t happen.
Prosecutors said in late December that there is “strong public interest” in resolving the case more quickly. Much of the evidence that might be offered in the second trial has already been seen in the first, they said, and a second trial wouldn’t affect the length of prison sentence Bankman-Fried could receive.
Bankman-Fried is in jail and due to be sentenced on March 28, 2024. Prosecutors said that the sentencing will likely include orders of forfeiture and restitution for the victims of his crimes – in other words, steps towards returning stolen funds.
