Sunday, July 21, 2024

The United States Securities and Exchange Commission (SEC) has set a critical deadline of December 29 for applicants of spot bitcoin exchange-traded funds (ETFs) to complete their filing revisions. This directive, as indicated in recent reports, stipulates that applications duly updated and submitted by the upcoming Friday will be evaluated in the initial round of decisions regarding spot bitcoin ETFs.

The SEC’s Directive for Spot Bitcoin ETF Filings

In recent meetings, the SEC has mandated that applicants for spot bitcoin ETFs finalize revisions to their registration statements by December 29. This requirement is crucial for inclusion in the initial decision-making process regarding these financial instruments.

Eleanor Terrett, a journalist for Fox Business, revealed via the social media platform X on December 24:

The SEC has made clear the necessity of finalizing all S-1 amendments by December 29. Updated and filed applications by this deadline will be eligible for the initial review phase. Late submissions will be excluded from this consideration.

Furthermore, Terrett highlighted the SEC’s insistence that spot bitcoin ETF applications exclude references to the in-kind creation method. Emphasis has been placed on adopting the cash creation method instead. “Applications mentioning in-kind creation will face rejection,” she reported.

Despite advocating for the in-kind model, Blackrock, the world’s leading asset manager, along with other applicants, eventually conformed to the SEC’s preference for the cash creation method in their latest filing updates.

SEC officials convened last Thursday with delegates from at least seven entities aspiring to launch spot bitcoin ETFs in the early part of the next year. This information comes from Reuters, which cited public records and internal sources. Prominent participants in these meetings included Blackrock, Grayscale Investments, ARK Invest, and 21shares, along with representatives from potential trading platforms like Nasdaq and Cboe.

Two executives from companies engaged in the discussions reported that the SEC hinted at possible approval of these ETFs in the early days of 2024. They noted that the issuers would receive direct communication regarding the effective dates for their ETF launches. The first decision deadline for a spot bitcoin ETF next year is slated for January 10, concerning a collaborative proposal from Ark and 21shares.

Presently, the SEC is reviewing 13 pending spot bitcoin ETF applications. There is widespread speculation that the agency might approve several of these ETFs simultaneously. Blackrock has recently announced plans to infuse $10 million into its spot bitcoin ETF on January 3. John Reed Stark, former chief of internet enforcement at the SEC, opined that approving spot bitcoin ETFs could be a significant aspect of SEC Chair Gary Gensler’s tenure. Last week, amidst growing expectations for the approval of spot bitcoin ETFs, Gensler issued a cautionary note regarding investments in cryptocurrencies.

What are your thoughts on the SEC’s December 29 deadline for spot bitcoin ETF applicants? Do you believe the agency is gearing up to authorize multiple spot bitcoin ETFs early next year? Share your views in the comments section.

Frequently Asked Questions (FAQs) about Spot Bitcoin ETF

What is the SEC’s deadline for spot bitcoin ETF applications?

The SEC has set December 29 as the deadline for applicants of spot bitcoin ETFs to finalize their filing amendments. Applications submitted by this date will be considered in the first wave of decisions on spot bitcoin ETFs.

How will the SEC’s decision on spot bitcoin ETFs impact the market?

The SEC’s decision could significantly impact the cryptocurrency market, as approval of spot bitcoin ETFs would provide more mainstream investment opportunities and potentially increase market stability.

What is the significance of the cash creation method for spot bitcoin ETFs?

The SEC has emphasized the use of the cash creation method over the in-kind creation method for spot bitcoin ETFs. This decision impacts how the ETFs will be structured and operated.

Which major companies are involved in the spot bitcoin ETF applications?

Major companies like Blackrock, Grayscale Investments, ARK Invest, and 21shares are involved in applying for spot bitcoin ETFs. They have been part of the discussions with the SEC regarding these applications.

What is the expected timeline for the SEC’s decision on spot bitcoin ETFs?

The first deadline for a decision on spot bitcoin ETFs is set for January 10, with potential approvals for proposed ETFs expected in the early days of 2024.

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