Blackrock and VanEck Update Bitcoin ETF Filing following SEC Queries

By: Isha Das

In response to additional comments from the SEC, Blackrock supplemented its S1 prospectus for a Bitcoin ETF on Jan. 9. The document, which indicates no major changes, implies that this could be the final filing before a decision from the SEC. Notably, these updates enhance the coverage of potential Force Majeure-like events for the Authorized Participants and the Bitcoin Trading Counterparty.

The first supplement expands on the risks tied to the termination of key agreements or the failure of vital parties to render their services. It broadens the scope to include the Authorized Participant Agreement and the Bitcoin Trading Counterparty Agreement, thus underlining a broader range of operational risks that could potentially affect the Trust's operations.

The second supplement addresses additional risks associated with the roles of Authorized Participants and Bitcoin Trading Counterparties. It stresses that if these parties encounter issues, including insolvency, business disruptions, failure to perform, or security breaches, significant adverse impacts could ensue. These could disrupt the Trust's creation and redemption process and affect the arbitrage mechanism meant to align the Shares with the Net Asset Value (NAV).

Similarly, VanEck also filed updated documents for a Bitcoin ETF within hours of a swift response from the SEC. As contenders among several issuers to launch Bitcoin ETFs in the U.S, both Blackrock and VanEck are keenly following developments.