The U.S. Securities and Exchange Commission (SEC) has a fast-approaching deadline of January 10, 2024 to decide on potentially approving a spot Bitcoin exchange-traded fund (ETF). The ETF approval could significantly integrate Bitcoin into traditional finance systems.
Key Players Involved
Several major financial firms including BlackRock, Grayscale Investments, ARK Investments, and 21 Shares are involved in discussions with the SEC regarding Bitcoin ETF applications.
December 29 Deadline
Fox Business reporter Eleanor Terrett confirmed that the final deadline for ETF applications is December 29, with only fully completed applications filed by that date being considered for the first round of approvals.
Anticipation of Approvals
Bloomberg Intelligence’s Eric Balchunas indicated that the SEC might approve multiple ETF applications simultaneously and that there is a rush to finalize applications by December 29. Despite the challenges, the market sentiment remains positive with Bitcoin’s price increasing in anticipation of potential ETF approvals.
The SEC is said to prefer cash redemption models for Bitcoin ETFs rather than in-kind redemptions, posing a challenge for some applicants. A key requirement is naming authorized participants (AP) in S-1 updates; missing AP agreements as of December 22 could exclude some applicants, per Balchunas.
SEC approval of Bitcoin ETFs could enhance the accessibility of Bitcoin investments, attracting more institutional and retail investors to the digital asset market.
Key facts provided by cryptonews.com.