A decision on approval of spot Bitcoin exchange-traded funds by the U.S. Securities and Exchange Commission (SEC). Amid the building anticipation, a Fox Business journalist Eleanor Terrett revealed a critical detail regarding the filing of ETFs.
US SEC journo reveals deadline
In a recent revelation by a Fox Business journalist, the US SEC has confirmed a critical deadline of December 29 for the final amendments to all S-1s related to spot Bitcoin ETFs. Eleanor Terrett reported that the SEC informed issuers that fully completed applications submitted by this date would be considered in the initial wave of evaluations. Meanwhile, those who would miss the deadline would be excluded. She added that the filings must avoid any mention of in-kind creation to avoid rejection.
Reuters reported that SEC officials engaged in discussions with representatives from seven companies eyeing the launch of spot Bitcoin ETFs in early 2024. The SEC has directed at least two companies, including BlackRock, Grayscale Investments, ARK Investments, and 21 Shares, to submit final changes by the end of next week.
Watchdog set to take big decision
The SEC is expected to decide on the joint proposal from ARK and 21 Shares by January 10. Industry insiders anticipate a green light for multiple applications simultaneously in the days leading up to the deadline.
Sources from two of the companies involved in discussions revealed that the SEC has set a December 29 deadline for final updates to filings. According to anonymous executives, those missing this deadline will not be part of the initial wave of potential spot Bitcoin ETF approvals in early January.
Arthur Hayes, former CEO of BitMEX, weighed in on the ongoing discussions. He highlighted the importance of choosing between cash and in-kind creation for Bitcoin ETFs. In a post, Hayes argued that in-kind creation simplifies the process for the fund but allows Bitcoin to be sourced from anywhere. On the other hand, cash creation adds complexity but grants significant power to the fund’s trading desk, potentially favoring politically connected brokers and exchanges.
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