Observers disagree on whether or not the SEC adding comments on S-1 forms is a delay tactic, as spot Bitcoin ETF approval deadline approaches.
The United States Securities and Exchange Commission (SEC) has added more comments to pending S-1 forms submitted by ETF applicants as part of the approval process. These comments come as the industry expects approval of at least one spot Bitcoin ETF by the January 10 deadline. However, there is a spreading worry that the additional comments might indicate a delay in ETF approval.
Perianne Boring, the President and Founder of blockchain trade association, The Chamber of Digital Commerce, announced the additional comments in an X post. According to Perianne, the addition is a delay signal. However, Bloomberg ETF analyst James Seyffart disagrees. In a response, Seyffart states that the additional comments are not “necessarily a delay signal”. According to him, it might indicate that the SEC is more willing than not. Seyffart wrote:
“Really this just shows how quickly the SEC is turning these things around. Borderline unheard of to send over a document to the SEC in the morning and get comments back the same day (I think). If they wanted to delay – the issuers wouldn’t have gotten comments back tonight.”
Agreeing with Seyffart, Van Buren Capital General Partner Scott Johnsson noted that the SEC typically would not send back comments on the same day of submission. After using Hashdex’s futures ETFs as an example, Johnsson also suggested the SEC is ready, stating that S-1s may not affect the status of 19b-4s:
“And to remind everyone, S-1S do not need to be complete when 19b-4s are approved. Take futures ETFs in 2022. Hashdex didn’t even get initial comments until after its 19b-4 was approved. More than anything, these quick comments demonstrate SEC working to push everything forward for a quick approval and launch (vs what we saw with futures).”
SEC Could Still Delay Spot Bitcoin ETF Approvals
While Seyffart and Johnsson believe the SEC’s additional comments are not exactly delays, Fox Business journalist and producer Eleanor Terrett seems to disagree. In a post, Terrett explains that each person in the 5-member commission can request a review and full commission vote based on their discretion. This could happen “even if the matter has already been signed and approved via delegated authority.
Terett was responding to Mercury Strategies partner Anne Kelley, who pointed out that this delay is possible under 17 C.F.R. Section 201.431, a part of the Code of Federal Regulations pertaining to the SEC.
Barring any possible delays, the SEC has a January 10 deadline to decide on approving or rejecting the proposal from ARK/21Shares. Subsequent approvals or rejections are to follow for other applicants, including BlackRock, VanEck, WisdomTree, Invesco, and others.
Bitcoin is already rising this year, with more than 11% in year-to-date (YTD) gains. Trading at $46,592 according to data from CoinMarketCap, Bitcoin climbed 14% over the last month, and more than 70% in three months.
