Firms seeking to establish spot Bitcoin exchange-traded funds face a key moment in the cryptocurrency investment product ecosystem. These applicants must submit their final S-1 modifications by December 29 to the SEC. Failure to reach this deadline implies exclusion from the early January 2024 approval wave.
This deadline, reported by Reuters and corroborated by public memoranda and industry insiders, has alerted numerous major investment businesses and financial institutions. On December 21, SEC authorities met with BlackRock, Grayscale Investments, ARK Invest, and 21 Shares personnel. Attorneys, issuing parties, and potential listing platforms including Nasdaq and the Chicago Board Options Exchange participated in the discussions.
Fox Business writer Eleanor Terrett, who first reported the deadline, stressed its importance. Terrett stressed that only applications received by December 29 will be considered for early approval. In-kind creation filings, implying non-monetary compensations like Bitcoin, would be rejected, she added.
I'm told the @SECGov has asked issuers to submit their amended filings with updates from yesterday's calls by the end of next week, so not sure this will happen but would be an interesting strategy. https://t.co/oYIVPbD5pM— Eleanor Terrett (@EleanorTerrett) December 22, 2023
The SEC’s cash redemption methodology for spot Bitcoin ETFs represents a regulatory change. Filers must switch from in-kind redemptions to monetary reimbursements. Bloomberg ETF analyst Eric Balchunas highlighted the importance of authorized participants (AP) in filings. Balchunas stated that the AP agreement is the final hurdle to ETF approval.
Balchunas said no spot Bitcoin ETF applicant had an AP agreement as of December 22, but seven have updated their redemption model to comply with the cash-only mandate. Bloomberg analysts expect the SEC to approve the first spot Bitcoin ETFs by January 10 despite these quick changes and regulatory issues.
This situation highlights a turning point in bitcoin investment tools. The SEC’s strict standards and timeframes show the bitcoin market’s maturity and regulatory integration as well as the agency’s cautious approach to digital asset goods.
This technique could change cryptocurrency investments by structuring and regulating Bitcoin trading through ETFs. The industry watches with eagerness as the deadline approaches, knowing these developments could influence cryptocurrency’s future.