SEC Sets Friday Deadline for Spot Bitcoin ETF

Issuers that fail to meet the December 29 deadline will be excluded from the initial wave of possible spot Bitcoin ETF sanctions in early January.

Spot Bitcoin exchange-traded funds (ETFs) applicants have just a few days to conclude their feelings to meet an imminent deadline set by the U.S. Securities and Exchange Commission (SEC).

According to a news agency, the regulator revealed to spot Bitcoin exchange-traded fund applicants that they should file final S-1 amendments by December 29. The agency cited public memos as well as two persons conversant with the talks.

SEC Readies Spot Bitcoin ETFs Approval

The report shows that on December 21, a meeting between the SEC and representatives of at least seven companies intending to unveil spot Bitcoin ETFs early next year took place. Examples of the meeting’s attendees included officials from ARK Investment, BlackRock, 21Shares, and Grayscale Investments.

Further, the meetings allegedly included officials of the exchanges that would possibly list the new products, for instance, Chicago Board Options Exchange, Nasdaq, issuers, and attorneys.

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Regulators apparently revealed to the meetings’ attendees that issuers that fail to meet the set deadline will not be included in the initial wave of possible spot Bitcoin exchange-traded fund approvals early next year.

Eleanor Terrett was one of the first journalists to talk about the deadline. She later verified the date for ultimate revision to all S-1s by December 29. Her X (formerly Twitter) post revealed that all applications that are wholly completed and filed by Friday will be considered in the initial phase. Further, she emphasized that all filings that indicate in-kind creation will not be considered.

Earlier, it was reported that several spot Bitcoin exchange-traded fund filers have been making efforts to revise their S-1 filings with the cash improvement structure. This replaces in-kind redemptions, implying non-monetary payments such as Bitcoin.

SEC Insists Cash-only Condition

Besides the cash-only condition, the Securities and Exchange Commission also wants the filings to include authorized participants’ (APs’) names. Eric Balchunas, an ETF analyst, said the authorized participants agreement is going to be the final obstacle on the path to spot Bitcoin exchange-traded funds.

On X. Balchunas wrote that this final step is not easy and might restrict some to the starting gate. A combination of AP agreement and cash results in approval. As of December 22, no spot Bitcoin ETF filers had the AP agreement. Additionally, Balchunas claimed that seven companies converted the redemption structure to cash.

In spite of numerous companies taking part in final-minute revisions for their spot Bitcoin exchange-traded fund filers, analysts are still optimistic the SEC will sanction the initial application by January 10. 

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