SEC Sets Deadline: Spot Bitcoin ETFs Face Crucial Approval Wave in January 2024

The United States Securities and Exchange Commission (SEC) has set a crucial deadline, fundamentally reshaping the landscape for spot Bitcoin exchange-traded funds (ETFs) issuers. A report by Fox Business journalist Eleanor Terrett emphasized that the recent updates from the SEC outline a meticulous approval process scheduled for January 2024. The SEC has issued a firm directive specifying that only firms submitting their final S-1 amendment forms by December 29, 2023, will be eligible for consideration in the inaugural wave of approvals.

Confirming the date for final amendments to all S-1s by Friday the 29th. The @SECGov has told issuers that applications that are fully finished and filed by Friday will be considered in the first wave. Anyone who is not will not be considered. In addition, the filings cannot… https://t.co/syyINu1BEI
— Eleanor Terrett (@EleanorTerrett) December 24, 2023

Setting the tone for this transformative development, industry behemoths BlackRock and Bitwise took the lead by expeditiously filing their S-1 amendment forms on December 4, 2023. Notably, early birds in the form of applicants like Grayscale had already lodged their amendments in November of the current year.

A pivotal facet of the SEC’s evolving stance is the outright prohibition of the in-kind creation model. Actively engaging with all applicants, the regulator has emphatically urged the removal of any in-kind directives from spot Bitcoin ETF prospectuses. As highlighted by Terrett on December 21 through a tweet, companies are now mandated to embrace the Cash Creates redemption model, heralding a paradigm shift in the regulatory landscape.

🚨DOUBLE SCOOP: Sources that were on the call tell me it was to do with making sure everyone is doing cash creates. The @SECGov asked issuers to remove all hints of in-kind redemptions from their filings. https://t.co/hEjXBAHLpY
— Eleanor Terrett (@EleanorTerrett) December 21, 2023

Further scrutiny centers around the SEC’s stance on the Prime Execution Agent model, potentially requiring adjustments in filings from industry giants such as BlackRock. This move underscores a departure from the SEC’s historically conservative stance, signifying a proactive approach to cryptocurrencies.

Amid this dynamic landscape, anticipation and excitement reverberate through the crypto market as it eagerly awaits updates and the potential approval of spot Bitcoin ETFs in the imminent weeks. The SEC’s uncompromising stance on the deadline for S-1 amendments emphasizes the gravity of the situation, conveying a clear message that delays in submission equate to exclusion from the initial wave of approvals.

The spot Bitcoin ETF approval process has gained urgency with recent SEC pronouncements. As key players align with the deadline and adopt the new redemption model, the crypto market anticipates a transformative moment, potentially opening doors to a more expansive and accessible cryptocurrency landscape.