Asset management giant BlackRock and crypto investment firm Bitwise have filed amended S1 forms with the Securities and Exchange Commission (SEC) in response to queries likely posed by the regulator during recent discussions. The updated filings aim to provide additional information, with industry analysts suggesting that both companies are actively working to address SEC concerns ahead of the decision on spot bitcoin ETF approvals expected between January 5th and January 10th.
The amendments made by BlackRock and Bitwise indicate their commitment to resolving any outstanding queries from the SEC. While specific details of the SEC’s inquiries remain undisclosed, these filings follow a series of meetings between the regulatory body and ETF applicants. Analysts speculate that further amendments from other applicants, such as Fidelity, Franklin, and WisdomTree, are likely in the near future.
BlackRock’s Updated Filing: Key Changes and Themes
BlackRock’s amended filing introduced 21 notable changes, covering various aspects such as security, risk disclosure, and the structure of the Trust. Additionally, the filing addressed potential regulatory impacts on the ETF and outlined strategies for navigating regulatory landscapes in jurisdictions like the UK and the EU. These adjustments demonstrate BlackRock’s efforts to provide comprehensive and clarified information to the SEC.
SEC Decision Timeline and Probability
The SEC is expected to make a decision on the approval of one or more spot bitcoin ETFs between January 5th and January 10th, marking the final deadline. Bloomberg analysts estimate a 90% probability of the SEC approving spot bitcoin ETFs during this period. The outcome of this decision is closely watched by the crypto community as it could significantly impact the accessibility of bitcoin investment products for institutional and retail investors.
BlackRock and Bitwise’s amended filings underscore the industry’s proactive approach to addressing SEC queries and enhancing transparency in their spot bitcoin ETF applications. As the regulatory deadline approaches, market participants eagerly await the SEC’s decision, which is poised to have a substantial impact on the adoption and legitimacy of bitcoin investment vehicles.
BlackRock, Inc. is an American multinational investment company headquartered in New York City. Founded in 1988, it began as an enterprise risk management and fixed income institutional asset manager. As of June 30, 2023, BlackRock has grown to become the world’s largest asset manager, with an impressive $9.42 trillion in assets under management.
As a company, BlackRock positions itself as a leading provider of investment, advisory, and risk management solutions. They emphasize their role as a fiduciary to their clients, focusing on investing for the future, inspiring their employees, and supporting local communities. This approach underscores their commitment to responsible and forward-thinking investment strategies.
In terms of services, BlackRock offers a broad range of investment and technology services. Their portfolio includes single and multi-asset portfolios, encompassing investments in equities, fixed income, alternatives, and money market instruments. Notably, BlackRock also provides technology services, including the investment and risk management technology platforms like Aladdin, which are integral to their operational framework.
Bitwise is a multifaceted company operating in the IT and software industry, known for its technology, development, and outsourcing services. Based in San Francisco, it caters to a diverse range of clients, from startups to Fortune 500 companies. Bitwise is also known as one of the largest and fastest-growing crypto asset managers, providing both index and active strategies across various investment vehicles. Additionally, it is a prominent software engineering services provider, specializing in safety-critical, real-time embedded software.
The company operates an asset management platform offering a smart way to invest, particularly in the cryptocurrency space. Its platform features cryptocurrency index funds and employs modern security procedures to safeguard assets. Bitwise provides single-asset funds that are known for being liquid, low-cost, and secure, catering to individuals, wealth managers, family offices, and investment managers.
In 2020, Bitwise’s revenue was reported by Forbes as $40 million, and the company claimed to have created 15,000 jobs in one of the cities where it operates, indicating significant impact and growth in its operational areas.
However, Bitwise has faced quite some financial challenges recently. The company underwent a financial implosion, leading to the furlough of about 900 workers. It has been reported to be late in paying various taxes, including county property taxes, business taxes in Fresno, and corporate taxes in Delaware. There have also been accusations of financial mismanagement against the company.
Moreover, Bitwise Industries filed for Chapter 7 bankruptcy, which is intended to liquidate a company’s assets to pay creditors. This bankruptcy filing included Bitwise Industries Inc. and several associated entities.