SEC Sets Deadline for Spot Bitcoin ETF Filings
The U.S. Securities and Exchange Commission (SEC) has given spot bitcoin ETF applicants until December 29th to finalize their filing amendments if they want to be considered in the first wave of spot bitcoin ETF decisions.
Instructions from the SEC
Last week, during meetings with spot bitcoin ETF applicants, the SEC instructed them to complete the amendments to their registration statements by the deadline in order to be included in the initial decision-making process. The applicants were told that failure to meet the deadline would result in their applications not being considered.
SEC’s Focus on Cash Creation Method
The SEC made it clear to applicants that their filings for spot bitcoin ETFs should not mention the in-kind creation method. Instead, the regulator has emphasized the use of the cash creation method, stating that any mention of in-kind creation would lead to rejection of the applications.
Blackrock Adopts Cash Creation Model
Blackrock, along with other spot bitcoin ETF applicants, had initially advocated for the use of the in-kind model. However, after failing to convince the SEC with their revised in-kind model, Blackrock decided to adopt the cash creation model in their latest filing amendment.
Meetings with SEC and Key Participants
Last Thursday, SEC officials held meetings with representatives from several companies, including Blackrock and 21shares, seeking to launch spot bitcoin ETFs. The meetings also involved representatives from exchanges where these ETFs could be traded. It was reported that approval for the proposed ETFs could come in the first few business days of 2024.
Expectations for Multiple Approvals
The SEC currently has 13 pending spot bitcoin ETF applications. There is speculation that the regulator may approve multiple ETFs at once. Blackrock has announced its plan to seed its spot bitcoin ETF with $10 million on January 3rd. Former SEC official John Reed Stark believes that approving spot bitcoin ETFs could be SEC Chair Gary Gensler’s legacy.
Hot Take: Spot Bitcoin ETF Decision Looms as SEC Sets Deadline
The SEC’s deadline for spot bitcoin ETF applicants to finalize their filing amendments by December 29th brings the highly anticipated decision one step closer. The regulatory emphasis on the use of the cash creation method and rejection of in-kind creation mentions signals the SEC’s intentions. ETF applicants, including Blackrock, are making last-minute adjustments to meet the requirements and maximize their chances of approval. With multiple companies vying for spot bitcoin ETF approval, the SEC’s decision in the first few business days of 2024 could have a significant impact on the crypto market and SEC Chair Gary Gensler’s legacy.
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