SEC Sets Deadline for Spot Bitcoin ETF Updates on Dec. 29

The United States Securities and Exchange Commission (SEC) has issued a critical deadline for applicants of the much-anticipated spot Bitcoin Exchange-Traded Funds (ETFs). According to a recent Reuters report, the final amendments for the S-1 filings must be submitted by December 29.

This announcement came after a meeting on December 21, where SEC officials convened with representatives from leading financial firms, including BlackRock, Grayscale Investments, ARK Invest, and 21 Shares. Discussions also included representatives from major exchanges like Nasdaq and the Chicago Board Options Exchange.

The SEC's deadline delineates a clear boundary: those who meet the deadline will be considered for the first wave of potential spot Bitcoin ETF approvals, expected in early January 2024. This move is a significant step in the evolving landscape of cryptocurrency regulation and investment products.

Fox Business journalist Eleanor Terrett highlighted the importance of this deadline on X (formerly Twitter), noting that the SEC will only consider fully finished and filed applications by December 29. Additionally, she pointed out that any filings indicating in-kind creation, which implies non-monetary payments like Bitcoin, will be rejected.

The SEC's requirements for spot Bitcoin ETFs have become more stringent. In addition to the cash-only redemption model, which replaces in-kind redemptions, applicants are also expected to name the authorized participants (AP) in their filings. Bloomberg ETF analyst Eric Balchunas commented that the AP agreement is a significant hurdle, and not having this in place could prevent some applicants from being approved.

Despite the challenges and the tight deadline, several firms are actively updating their filings to comply with the SEC's guidelines. Bloomberg analysts remain optimistic that the SEC could approve the first spot Bitcoin ETFs by January 10, 2024, marking a new era in cryptocurrency investment vehicles.