Applicants seeking approval for a spot Bitcoin exchange-traded fund (ETF) in the United States are racing against a looming deadline set by the Securities and Exchange Commission (SEC). The SEC has mandated that spot Bitcoin ETF applicants must file final S-1 amendments by December 29, with the implications that issuers failing to meet this deadline may miss out on the first wave of potential spot Bitcoin ETF approvals in early January.


Key Points:

  • SEC Deadline: The SEC has set a deadline for spot Bitcoin ETF applicants to submit final S-1 amendments by December 29, as reported by Reuters and confirmed by Fox Business journalist Eleanor Terrett.

  • Meetings with Officials: SEC officials reportedly met with representatives from at least seven firms, including BlackRock, Grayscale Investments, ARK Invest, and 21 Shares, on December 21 to discuss spot Bitcoin ETF applications for early 2024.

  • First Wave Approvals: The SEC communicated to issuers that applications fully finished and filed by the December 29 deadline will be considered in the first wave of potential spot Bitcoin ETF approvals in early January.

  • Filing Requirements: Filings mentioning in-kind creation, which involves non-monetary payments like Bitcoin, are expected to be rejected. The SEC has been urging spot Bitcoin ETF filers to update their S-1 filings with the cash redemption model, replacing in-kind redemptions.

  • Authorized Participants (AP) Agreement: The SEC reportedly wants Bitcoin ETF filers to specify the authorized participants (AP) in their filings. The AP agreement, seen as the last hurdle, is crucial for spot Bitcoin ETF approval.

  • Industry Expectations: Despite the rush to meet the deadline, analysts are confident that the SEC will approve the first spot Bitcoin ETFs by January 10, 2024. Bloomberg analysts emphasize the importance of the AP agreement and the shift to cash redemptions for approval.

Implications for the Industry: The SEC's December 29 deadline adds pressure on spot Bitcoin ETF applicants to finalize their filings and adhere to regulatory requirements. The anticipated approval of the first spot Bitcoin ETFs is considered a significant milestone for the cryptocurrency industry, potentially opening new avenues for institutional investment.

Conclusion: As spot Bitcoin ETF applicants work to meet the SEC's deadline and address regulatory requirements, the outcome of the first wave of potential approvals in January 2024 will be closely watched. The regulatory developments around spot Bitcoin ETFs could have broader implications for the integration of cryptocurrency products in traditional financial markets.


(HELEN PARTZ, COINTELEGRAPH, 2023)