Those seeking a Bitcoin exchange-traded fund (ETF) placement only have a handful of days left to wrap up their applications for the cutoff set by the United States Securities and Exchange Commission (SEC).
The SEC has marked Dec. 29 as the last date for final S-1 amendments submission by spot Bitcoin ETF contenders, as per reports from Reuters, referencing public documents and inside sources familiar with the talks.
On Dec. 21, the report states that SEC officials had conversations with roughly six companies. These companies plan to start Bitcoin ETFs, a type of investment, at the beginning of 2024. People present in those meetings were from BlackRock, Grayscale Investments, 21 Shares, and ARK Investments.
Not only that, but the meetings had people who represented exchanges that may list these new investments. Names you might know are Nasdaq and the Chicago Board Options Exchange. Lawyers and issuers were there too.
According to sources, officials stated during the meetings that issuers failing to meet the Dec. 29 deadline won’t be included in the initial approval batch for prospective spot Bitcoin ETFs in early January.
Breaking the news early, Fox Business reporter Eleanor Terrett quickly unveiled the deadline. Subsequently, Terrett verified that the ultimate date for making final amendments to all S-1 filings is Dec. 29.
Bitcoin ETF Applicants Race To Meet SEC’s Cash-Only Requirement
“The journalist relayed the SEC’s message on X (previously Twitter): Complete all forms by Friday to be considered immediately,” she said. Any mention of in-kind creation will lead to filing rejections, she warned.
Many Bitcoin ETF applicants have been quickly updating their S-1 files to the cash redemption model. This change replaces the in-kind redemptions that typically involve non-money payments like Bitcoin.
Not only does the SEC want Bitcoin ETF applicants to provide only cash, but they’re also asking them to list the authorized participants (AP) in their documents. Eric Balchunas, an ETF Analyst from Bloomberg, views the AP agreement as the final obstacle for spot Bitcoin ETFs.
“It’s not an easy last task and might prevent some from starting. AP agreement and cash ultimately result in approval,” Balchunas penned on X. As of Dec. 22, no Bitcoin ETF applicants arranged an AP agreement, while seven companies changed the redemption model strictly to cash, according to Balchunas.
Several companies are scrambling to make final changes to their Bitcoin ETF proposals. Yet, Bloomberg analysts remain convinced that the SEC will greenlight the inaugural spot Bitcoin ETFs by Jan. 10.
Related Reading | Crypto Industry Fights Back With Huge Donations To US Politicians
The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.
