Dec 25, 2023

SEC Sets Deadline for Spot Bitcoin ETF Updates on Dec. 29

SEC Sets Deadline for Spot Bitcoin ETF Updates on Dec. 29 | Crypto Fox
SEC sets deadline for spot Bitcoin ETF updates on Dec. 29

Spot Bitcoin ETFs Deadline Approaching

Applicants for a spot Bitcoin (BTC) exchange-traded fund (ETF) have only a few days left to finalize their filings to meet the upcoming deadline set by the United States Securities and Exchange Commission (SEC). According to Reuters, citing public memos and two people familiar with the discussions, the SEC has set a deadline of Dec. 29 for spot Bitcoin ETF applicants to file final S-1 amendments.

The meetings, held on Dec. 21, included representatives from BlackRock, Grayscale Investments, ARK Investments, 21 Shares, as well as exchanges such as Nasdaq and Chicago Board Options Exchange, lawyers, and issuers. These firms are hoping to launch spot Bitcoin ETFs in early 2024.

Crypto Fox, Keep Crypto, and Voyager Crypto Update have all reported on the news, noting that the SEC has set a deadline for spot Bitcoin ETF applicants to file their final S-1 amendments by Dec. 29.

SEC Sets Deadline for Bitcoin ETF Filings

Regulators have reportedly informed participants at recent meetings that any issuer who fails to meet the Dec. 29 deadline will not be part of the first wave of potential Bitcoin ETF approvals in January. Fox Business journalist Eleanor Terrett was the first to report the date for final amendments to all S-1s by Dec. 29.

“The SEC told issuers that applications that are completely finished and filed by Friday will be considered in the first wave,” Terrett wrote on X (formerly Twitter). She also noted that filings which mention in-kind creation will be rejected.

As previously reported, numerous spot Bitcoin ETF filers have been hurrying to update their S-1 filings with the cash redemption model, replacing in-kind redemptions, which imply non-monetary payments such as Bitcoin.

SEC’s Requirements for Spot Bitcoin ETFs

The U.S. Securities and Exchange Commission (SEC) is reportedly requiring Bitcoin ETF filers to name the authorized participants (AP) in their filings and to switch to a cash-only redemption model. According to Bloomberg ETF analyst Eric Balchunas, the AP agreement is the last hurdle for spot Bitcoin ETFs to be approved.

“This is no easy last step, and may keep some from starting gate. AP agreement + cash creates = approval,” Balchunas wrote on X. As of Dec. 22, none of the spot Bitcoin ETF filers had the AP agreement in place, while seven firms switched the redemption model strictly to cash, according to Balchunas.

Despite multiple firms making last-minute updates to their spot Bitcoin ETF filings, analysts at Bloomberg are confident that the SEC will approve the first spot Bitcoin ETFs by Jan. 10.

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