New SEC Deadline for Bitcoin ETF Filings
SEC’s Final Amendments Deadline: The SEC has set a final deadline for the S-1 filings of Bitcoin ETFs which should be submitted by December 29. This is a critical deadline for initial approvals.
Spot Bitcoin ETF and the Recent SEC Meetings
Meeting with High-Profile Representatives: SEC officials recently held meetings with representatives from seven firms aiming to launch spot Bitcoin ETFs. Those firms included BlackRock, Grayscale Investments, ARK Invest, and 21 Shares.
Involvement of Exchanges: The officials also met with representatives from potential listing exchanges like Nasdaq and the Chicago Board Options Exchange, alongside lawyers and issuers.
Implications of the SEC Deadline
First Wave of Approvals: The SEC has stated that only issuers meeting the December 29 deadline will be considered for the first wave of potential spot Bitcoin ETF approvals, expected in early January.
Reporting by Fox Business Journalist: Fox Business journalist Eleanor Terrett confirmed the final amendment date, noting that the SEC would prioritize applications completed and filed by this Friday.
Requirements and Challenges
Rejection of In-Kind Creation Filings: The SEC has indicated that filings mentioning in-kind creation, will be rejected. This involves non-monetary payments like Bitcoin.
Shift to Cash Redemption: In response, many spot Bitcoin ETF filers are updating their S-1 filings, moving away from in-kind redemptions to adopt a cash redemption model.
Authorized Participants Requirement: The SEC expects Bitcoin ETF filers to name their authorized participants in the filings as a significant hurdle for approval.
Status of Filings: As of December 22, none of the filers had an AP agreement in place, although seven firms have already switched their redemption model to cash.
Outlook and Expectations
Despite the rush for last-minute updates, Bloomberg analysts remain confident that the SEC will approve the first spot Bitcoin ETFs by January 10. This development marks a significant moment in the cryptocurrency market, potentially paving the way for greater mainstream adoption and investment in Bitcoin.
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