Bitcoin ETF Approval Deadline: The U.S. SEC has notified potential Bitcoin ETF spot issuers to make final revisions to their applications by December 29.
Bitcoin spot ETF approval delayed for months
Afterwards, the Securities and Exchange Commission (SEC) has told ETF applicants to make final changes to their applications by December 29, 2023. Fox Business reporter Eleanor Terrett on X (formerly Twitter) Monday.
The development comes after SEC officials held a meeting last week with representatives of at least seven companies, including BlackRock, Grayscale Investments, ARK Investments and 21Shares, that have submitted proposals for spot bitcoin ETFs in the United States.
SEC plans to approve spot Bitcoin ETF in early January 2024
An important piece of news revealed at the meeting is that U.S. market regulators may approve a spot Bitcoin ETF as early as January 2024. The SEC is currently evaluating the joint proposal of ARK and 21Shares and may make a final decision by January 10, 2024.
Speculation is rife that the SEC will approve a slew of spot Bitcoin ETF applications during this window. Wall Street’s top cop has directed issuers to make final changes to their applications by Dec. 29, warning that those that fail to meet the Dec. 29 deadline will not be included in the first wave of potential approvals scheduled for early January 2024.
Top financial institutions have been racing to launch spot Bitcoin ETFs. The long list includes well-known companies such as BlackRock, Invesco, VanEck, Wisdomtree, Fidelity, and ARK Investments.
Regulatory stance on Bitcoin ETFs shifts
The urgency of the Dec. 29 deadline marks a significant shift in the SEC’s stance on bitcoin ETFs. In recent years, the agency has rejected multiple spot bitcoin ETF applications citing concerns about fraud and price manipulation.
However, recent developments — such as the launch of an Ethereum futures ETF and court rulings in favor of Grayscale and Ripple — have raised the likelihood that spot Bitcoin products will receive regulatory approval in the United States.
If the SEC approves a spot Bitcoin ETF, it would herald a new beginning for the cryptocurrency community. Newbies still find the complexity of exchanges, crypto wallets, and private keys quite overwhelming. A spot Bitcoin ETF would allow investors to have direct exposure to Bitcoin without actually holding the cryptocurrency.
The buzz in the crypto community is that if the SEC approves a spot Bitcoin product, it would trigger a major rally in Bitcoin prices, pushing crypto markets further higher. Last week, CoinGape reported that if a Bitcoin ETF receives regulatory approval in the United States, it would also boost retail investment.
