Candidates seeking approval for a spot Bitcoin ETF are facing a tight deadline imposed by the U.S. Securities and Exchange Commission (SEC). They must complete their final S-1 amendment submissions by December 29, as reported by Reuters, which referenced public notices and sources familiar with the matter.
The SEC convened a meeting on December 21 with representatives from at least seven companies aspiring to introduce spot Bitcoin ETFs in early 2024. Attendees included members from BlackRock, Grayscale Investments, ARK Invest, and 21 Shares, among others.
This gathering also saw participation from representatives of potential listing exchanges like Nasdaq and the Chicago Board Options Exchange, alongside various lawyers and issuers.
The SEC has informed these parties that missing the December 29 deadline would exclude them from the initial batch of spot Bitcoin ETF approvals expected in early January.
Fox Business reporter Eleanor Terrett was one of the first to disclose this deadline, later confirming the final amendment date for all S-1s as December 29.
Terrett noted on X (formerly known as Twitter) that only applications completed and submitted by Friday would be considered in the initial approval phase. She also highlighted that applications mentioning in-kind creation would be dismissed.
Previous reports indicated that many spot Bitcoin ETF applicants are updating their S-1 filings to include a cash redemption model instead of in-kind redemptions, which involve non-cash assets like Bitcoin. The SEC is also said to be insisting that Bitcoin ETF applicants specify their authorized participants (AP) in their submissions. Bloomberg ETF analyst Eric Balchunas commented that securing an AP agreement, along with the shift to cash redemptions, is crucial for approval.
Balchunas pointed out that this final step is challenging and might prevent some from entering the race. He noted that as of December 22, none of the applicants had finalized an AP agreement, though seven firms had already transitioned to a strictly cash redemption model.
Despite these last-minute updates by various firms, Bloomberg analysts remain optimistic that the SEC will approve the first spot Bitcoin ETFs by January 10.
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