SEC Imposes December 29 Deadline for Spot Bitcoin ETF Updates

Individuals vying for a position in a Bitcoin ETF have a limited timeframe to complete their submissions, facing a looming deadline established by the United States Securities and Exchange Commission (SEC). The SEC has mandated that applicants for a spot Bitcoin ETF must submit final S-1 amendments by December 29, as reported by Reuters, citing public memos and individuals familiar with the discussions. According to the information, SEC officials convened on December 21 with representatives from at least seven firms aiming to launch spot Bitcoin ETFs in early 2024.

During these meetings, regulators communicated to attendees that any applicant failing to meet the December 29 deadline would not be considered for the initial round of potential spot Bitcoin ETF approvals in early January.

In addition to the shift to cash-only redemption, the SEC reportedly requires Bitcoin ETF applicants to specify the authorized participants (AP) in their filings. Bloomberg ETF analyst Eric Balchunas noted that the AP agreement represents the final obstacle to securing spot Bitcoin ETF approvals. He expressed that this step, coupled with the cash redemption requirement, might pose challenges for some applicants, but successful completion of the AP agreement along with the cash component equates to approval.

As of December 22, none of the spot Bitcoin ETF applicants had finalized the AP agreement, while seven firms had exclusively adopted the cash redemption model, according to Balchunas.

Resources:

Reuters

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