Applicants for a spot Bitcoin exchange-traded fund (ETF) are in a critical phase as they prepare to meet a significant deadline set by the United States Securities and Exchange Commission (SEC). This looming deadline could shape the landscape of cryptocurrency investment in the coming year.
SEC’s Imminent Deadline
The SEC has mandated a final deadline for spot Bitcoin ETF applicants to submit their S-1 amendments by December 29, according to a recent Reuters report. This move is seen as a pivotal moment for the cryptocurrency market, potentially paving the way for new investment opportunities.
Key Meetings and Participants
On December 21, SEC officials convened with representatives from several firms, including BlackRock, Grayscale Investments, ARK Investments, and 21 Shares. These meetings, critical in deciding the future of Bitcoin ETFs, also included prominent exchanges like Nasdaq and Chicago Board Options Exchange.
The First Wave of Approvals
The SEC has indicated that applications completed and filed by December 29 will be considered for the first wave of approvals slated for early January. This stipulation underscores the urgency for applicants to meet the upcoming deadline.
The Role of Fox Business and Reporting
Fox Business journalist Eleanor Terrett was among the first to report on this critical deadline, emphasizing the importance of the December 29 date for final amendments to all S-1 filings.
Shifting to Cash Redemption Models
Many applicants are now updating their S-1 filings to incorporate a cash redemption model. This shift is in response to the SEC’s preference over in-kind redemptions, reflecting a significant adjustment in the approach to Bitcoin ETFs.
The Authorized Participant Requirement
The SEC has also mandated the naming of authorized participants (APs) in filings. This requirement represents a crucial final step for applicants, as noted by Bloomberg ETF analyst Eric Balchunas.
The Current Status and Outlook
As of now, no applicant has an AP agreement in place, with several firms switching to a strict cash redemption model. Despite these last-minute updates, analysts remain optimistic about the SEC’s potential approval of the first spot Bitcoin ETFs by January 10.
The upcoming December 29 deadline marks a decisive moment for the cryptocurrency market, as applicants for the spot Bitcoin ETF position themselves for possible early 2024 approvals. The investment community eagerly awaits the SEC’s decisions, which could significantly impact the trajectory of Bitcoin and cryptocurrency investments.