The SEC has announced a Dec. 29 update deadline for potential spot Bitcoin ETF providers that wish to receive their approvals in early January.
The U.S. Securities and Exchange Commission (SEC) has reportedly set a deadline for spot Bitcoin ETF applicants to file their final S-1 amendments by Dec. 29. The given information was obtained by Reuters, citing public memos and people familiar with the matter.
In particular, the sources stated that the SEC officials met with representatives of several financial firms hoping to launch spot Bitcoin ETFs in early 2024 on Dec. 21. Some participants of those meetings included BlackRock, Grayscale Investments, ARK Invest and 21 Shares.
Besides the spot Bitcoin ETF applicants themselves, the meeting reportedly hosted the representatives of the exchanges that could potentially list the new investment products, e.g. Nasdaq and the Chicago Board Options Exchange, as well as lawyers and issuers.
Meeting the Dec. 29 deadline is crucial for those firms that would like their applications to be approved within the first wave of potential spot Bitcoin ETF approvals expected in early January 2024.
The amended filings should reportedly contain the cash redemption model, instead of in-kind redemptions, which presuppose non-monetary payments like Bitcoin.
Besides that, the SEC also reportedly wants Bitcoin ETF filers to clearly indicate the authorized participants (AP) in their spot Bitcoin ETF filings.
According to Bloomberg ETF analyst Eric Balchunas, as of Dec. 22, none of the spot Bitcoin ETF filers had the AP agreement included, while seven firms have already switched the redemption model to cash. Moreover, on Dec. 23, it was reported that BlackRock had already submitted an updated S-1 for their Bitcoin ETF.
BlackRock first applied for the first crypto spot ETF in the United States in June 2023. Responding to the SEC requirements, the firm refiled for a spot Bitcoin ETF approval in July, finalising a ‘surveillance-sharing agreement’ with Coinbase, which would allow for bilateral surveillance-sharing between Nasdaq and the cryptocurrency exchange.
In November, BlackRock also filed for Ethereum ETF which holds Ethereum’s native cryptocurrency ether. Reportedly, the firm plans to list it on the Nasdaq exchange once it gets regulatory approval.