The U.S. Securities and Exchange Commission (SEC) has set a crucial deadline for those applying to launch Spot Bitcoin Exchange-Traded Funds (ETFs). Applicants must finalize their S-1 amendments by December 29, according to a report by Reuters, which cites a public notice and information from two sources familiar with the situation.
On December 21, SEC officials held meetings with representatives from at least seven firms aiming to introduce a spot Bitcoin ETF in early 2024. Participants in these discussions included notable entities like BlackRock, Grayscale Investments, ARK Investments, and 21Share, along with representatives from potential listing exchanges such as Nasdaq and the Chicago Board Options Exchange. Legal experts and issuers were also present.
The SEC has informed those at the conference that any issuer failing to meet the December 29 deadline will miss out on the initial round of potential approvals for Bitcoin ETF spot offerings, which are expected in early January.
Fox Business journalist Eleanor Terrett was among the first to report this deadline. She later confirmed the December 29 date for the final submission of all S-1 revisions. In a post on X (formerly Twitter), Terrett noted that applications completed and filed by this Friday would be considered in the first group. She also pointed out that applications including physical creations would be rejected, as several spot Bitcoin ETF applicants have hurriedly revised their S-1 filings to switch from in-kind (non-monetary, like Bitcoin) to cash redemptions.
The SEC is also insisting that Bitcoin ETF applicants include the names of authorized participants (APs) in their submissions. Bloomberg ETF analyst Eric Balchunas commented that securing an AP agreement, coupled with the cash redemption requirement, is a significant final step towards approval. As of December 22, no spot Bitcoin ETF applicant had secured an AP agreement, though seven firms had switched their redemption models to cash. Despite these last-minute changes, Bloomberg analysts are optimistic that the SEC will approve the first spot Bitcoin ETFs by January 10.
