SEC Sets December 29 Deadline for Final Adjustments to Bitcoin ETF Applications
Summary:
The U.S. Securities and Exchange Commission (SEC) has set a deadline of December 29th for the complete filing of S-1 amendments by Bitcoin (BTC) Exchange-Traded Fund (ETF) applicants. During a meeting on December 21st, SEC officials informed firms, including BlackRock, Grayscale Investments, ARK Investments, and 21 Shares, that all applications filed by the deadline will be in the first batch of reviews in early January 2024. The SEC also stressed that filings including in-kind generation will be declined, and a cash-only approach and AP agreements are required to move forward.
Companies vying for a Bitcoin (BTC) exchange-traded fund (ETF) slot have limited time remaining to complete their submissions, in adherence with the cut-off point given by the United States Securities and Exchange Commission (SEC). As per information gathered by Reuters, the SEC set a deadline for all Bitcoin ETF candidates to submit their complete S-1 amendments by December 29th. SEC representatives on December 21st sat down with members of seven organizations, including BlackRock, Grayscale Investments, ARK Investments, and 21 Shares, looking to debut Bitcoin ETFs early in 2024.
Other individuals also present during these discussions included those from the NASDAQ and Chicago Board Options Exchange, as well as several attorneys and issuers. Attendees were reportedly informed by regulators that any issuer not meeting the December 29th deadline would be excluded from the initial batch of Bitcoin ETF approvals expected in early January. Eleanor Terrett, a Fox Business reporter, was among the earliest to alert about this deadline. She corroborated the final date for completing all S-1 amendments, noting that any applications filed by December 29th will be included in the earliest pool of reviews.
Furthermore, all applications receiving mention for in-kind generation will be declined. Apart from the all-cash stipulation, SEC hinted at Bitcoin ETF applicants to outline the authorized participants (APs) within their submissions. As per Eric Balchunas, a Bloomberg ETF analyst, before acquiring a spot in Bitcoin ETFs, the developers have to cross the AP agreement, which seems to be the last barrier to entry.
As of December 22nd, none of the submitted Bitcoin ETF applications had an AP agreement, though seven switched their redemption model to cash. However, despite numerous organizations working on final changes to their Bitcoin ETF applications, Bloomberg analysts are optimistic that by January 10 the SEC will refine the first Bitcoin ETF applications.
Published At
12/25/2023 1:44:00 PM
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