SEC Sets Deadline for Bitcoin Spot ETF Approval Process
The United States Securities and Exchange Commission (SEC) has announced a crucial date for the approval process of Bitcoin Spot Exchange-Traded Funds (ETFs). This date, provided by the SEC, is December 29, 2023. It applies to all S-1 Bitcoin Spot ETFs.
First Wave Approval Process
The SEC has revealed that the first wave of potential spot Bitcoin ETF issuers will only include companies that can file their final S-1 amendment forms by the given deadline. Failure to meet this deadline will exclude an applicant from consideration for the first wave.
Exclusion of In-Kind Redemption Method
Applicants must also note that in-kind redemption methods should not be included in their S-1 filings. The SEC has warned that any applicant including this in their filings will be rejected.
A tweet by Fox Business journalist Eleanor Terrett confirmed the SEC’s announcement regarding the deadline and the exclusion of in-kind creation:
“Confirming the date for final amendments to all S-1s by Friday the 29th. The @SECGov has told issuers that applications that are fully finished and filed by Friday will be considered in the first wave. Anyone who is not will not be considered. In addition, the filings cannot mention in-kind creation or they will be rejected.”
Cash Creates Redemption Strategy
The SEC has been actively communicating with applicants, instructing them to remove any references to “in-kind” in their spot Bitcoin ETF applications. Instead, companies must adhere to the “Cash Creates” redemption strategy mandated by the SEC. This model allows authorized participants to deposit money into the ETF to purchase Bitcoin.
BlackRock’s $10 Million Seed Fund
BlackRock, the world’s largest asset manager, has announced a $10 million seed funding for its spot Bitcoin ETF. This move demonstrates BlackRock’s commitment to leading the Spot Bitcoin ETF market. However, the seed fund does not indicate an immediate launch of the firm’s BTC spot ETF.
The proceeds of BlackRock’s seed creation basket are expected on January 3, 2023, but plans may change.
Hot Take: SEC Sets Deadline for Bitcoin Spot ETF Approval
The SEC has established a deadline for the approval process of Bitcoin Spot Exchange-Traded Funds (ETFs), which is December 29, 2023. This deadline applies to all S-1 Bitcoin Spot ETFs. The first wave of potential issuers will only include companies that meet the deadline by filing their final S-1 amendment forms. Additionally, applicants must exclude any mention of in-kind creation in their filings to avoid rejection. The SEC has been proactive in communicating these requirements and enforcing the “Cash Creates” redemption strategy. Meanwhile, BlackRock has announced a $10 million seed fund to support its spot Bitcoin ETF, demonstrating its commitment to leading the market. However, this does not guarantee an immediate launch of BlackRock’s BTC spot ETF.
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