Wait For SEC, BlackRock And Bitwise Approval Of Bitcoin ETF Proposals

BlackRock revised the Bitcoin ETF submission proposal. (Photo; Doc. Cryptocartel)

JAKARTA - Two global financial market giants, BlackRock Inc and Bitwise, have submitted changes to their proposal for Exchange-Trad Funds (ETF) Bitcoin (BTC) spot to the US Securities and Exchange Commission (SEC). The move shows an active discussion between regulators and major market players for approval of the spot's Bitcoin ETF in the US.

In documents that are updated and accessible on the SEC's official website, BlackRock emphasizes monitoring of unusual price movements in the proposed ETF market. Trust administrators plan to implement strong measures to detect and respond to any irregularities in the Bitcoin market.

In addition, BlackRock also demonstrates its commitment to working exclusively with third-party service providers who have gone through a strict process of compliance with Know Your Customers (KYC). These providers include Autotorized Participants, Market Players, Main Cupang, and Bitcoin Storers.

The company has also secured 100.000 (IDR 1.55 billion) as the initial capital for the proposed Bitcoin ETF, iShares Bitcoin Trust. Undisclosed investors agreed to buy 100.000 (IDR 1.55 billion) in stock at a unit price of $25 (IDR 387,500) per share.

Market analysts see the filing of this latest document as an indication of ongoing collaborative efforts between the SEC and its main publishers to navigate the regulatory landscape. Bloomberg Intelligence analyst James Seyffart has predicted a potential Bitcoin ETF approval in the US in January 2024.

Speculations surrounding the Bitcoin spot ETF approval have contributed to the Bitcoin price spike. The world's largest digital asset has seen a significant increase of 20.6% in the past month, reaching a current trade value of around $42,000 (Rp 651.6 million).

Meanwhile, the SEC has not yet approved a spot Bitcoin ETF on the US exchange. However, regulators have opened talks with Grayscale Investments about the company's app details to turn GBTC trust products into spot Bitcoin ETF products. Grayscale has communicated with the SEC's Trade and Markets and Financial Division since winning a fight in court.

At the same time, Bitwise has also submitted a revised Bitcoin ETF proposal to the SEC. This proposal is the result of a dialogue between Bitwise and regulators. Even so, the SEC has postponed a decision on all applications to Bitcoin ETF, including the Bitwise case. Regulators have until March-April 2024 to make final decisions about the class of products traded on these exchanges.

With efforts being made by BlackRock, Bitwise, and other market players, the crypto community is awaiting approval from the SEC in hopes of having a major impact on the cryptocurrency industry.