Spot Bitcoin ETFs: The Timeline Ahead
The SEC is preparing for a significant approval period for spot Bitcoin ETF applications, potentially green-lighting all 12 by November 17. This “window” of opportunity starts on November 9, making this a pivotal moment for cryptocurrency enthusiasts and investors.
What Happens After Approval?
Despite the likely go-ahead from the SEC, don’t rush to buy those party hats just yet. There’s often a lag between approval and launch, likely stretching into the new year. The magic two-step process includes securing a nod from two key SEC divisions:
- Trading and Markets Division: Look for the 19b-4 filing to clear.
- Corporate Finance Division: The all-important S-1 filing or prospectus must also receive a thumbs up.
Interestingly, nine issuers are already ahead of the game, having submitted updated prospectuses, suggesting they’ve been in talks with the SEC’s Corporate Finance unit.
Nasdaq’s Expansion into Ethereum ETF
In a plot twist that even M. Night Shyamalan would appreciate, Nasdaq has jumped into the fray by filing a 19b-4 form for BlackRock’s proposed iShares Ethereum Trust. With Bitcoin being the main act, it seems BlackRock is aiming to diversify its crypto portfolio. They’ve officially registered their corporate entity for this venture, signaling a possible Ethereum ETF on the horizon!
More Firms Enter the Ethereum Space
BlackRock isn’t alone in the Ethereum ETF chase. At least five other firms are also angling for approval, including:
- VanEck
- ARK 21Shares
- Invesco
- Grayscale
- Hashdex
The CLARITY Act and Its Implications
In another exciting development, U.S. Representatives Zach Nunn and Abigail Spanberger have unveiled the CLARITY Act of 2023. This act could potentially slam the door shut on U.S. government officials engaging with Chinese blockchain companies, including prohibiting transactions with iFinex, Tether’s parent company.
The implications of this legislation are substantial, as it aims to create a boundary in the blockchain space between U.S. officials and foreign enterprises, thereby tightening the existing regulatory fabric.
Global Crypto Tax Reporting Framework
In a world that seems to be running on tax forms and paperwork, 47 countries have teamed up to commit to the Crypto-Asset Reporting Framework (CARF) by 2027. This international standard promises to automate the exchange of tax data related to cryptocurrency and digital assets.
Developed from a G20 mandate, CARF will require jurisdictions to report concerning the type of cryptocurrency and its transactions. This could mean more eyes on those crypto trades—so keep your receipts!
European Banking Authority’s Guidelines for Stablecoins
Lastly, keeping the momentum rolling, the European Banking Authority (EBA) has proposed guidelines for stablecoin issuers—think of it as a ‘Best Practices’ guide but for cryptocurrencies. The new guidelines seek to enforce stringent minimum capital and liquidity requirements for stablecoins.
These guidelines will introduce liquidity stress tests to prevent issuers from diving into the deep end without a life vest. Essentially, they want to ensure that only stablecoins backed by solid foundations and adequate liquidity survive the test of time.
