SEC Sets Deadline for Bitcoin ETFs! Who’s In, Who’s Out in the Race for Bitcoin ETF Approval?
In a highly anticipated move, the United States Securities and Exchange Commission (SEC) has recently made significant announcements regarding the approval process for spot Bitcoin exchange-traded funds (ETFs) scheduled for January 2024. This article delves into the critical updates and developments surrounding this much-anticipated event.
Deadline for Submission: 29th December, 2023
The SEC has set a crucial deadline for potential spot Bitcoin ETF issuers. Only firms that successfully submit their final S-1 amendment forms by the 29th of December, 2023, will be considered for the initial wave of approvals. This marks a pivotal moment for companies seeking to venture into the spot Bitcoin ETF space.
Elimination of ‘In-Kind’ Creation Model
A significant development in the SEC’s approach involves the elimination of the ‘in-kind’ creation model. The regulator has actively communicated with applicants, emphasizing the removal of any ‘in-kind’ directives from spot Bitcoin ETF prospectuses. Instead, companies are now required to adhere to the “Cash Creates” redemption model.
As of now, industry leaders like BlackRock and Bitwise have taken the lead by submitting their S-1 amendment forms on December 4th, 2023. VanEck joined the fray on December 8th, submitting its fifth S-1 amendment form. Other early applicants, including Grayscale, had already submitted their amendments in November.
Prime Execution Agent Model and Regulatory Adjustments
The financial industry is closely monitoring the SEC’s stance on the Prime Execution Agent model, anticipating adjustments to filings from major players like BlackRock. This shift indicates a noteworthy departure from the SEC’s traditionally conservative stance, signaling a more proactive approach to cryptocurrencies.
Market Anticipation and Future Updates
The crypto market is buzzing with excitement and anticipation as the industry awaits further updates and potential approval of spot Bitcoin ETFs in the coming weeks. This development marks a groundbreaking shift in the world of digital assets, and we will keep you informed with breaking news on this transformative development.
Stay tuned for the latest developments in the SEC’s approval process for spot Bitcoin ETFs as we witness a new chapter unfolds in the intersection of traditional finance and the world of cryptocurrencies.
