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SEC Sets Deadline for Modified S-1 Filings for Bitcoin ETFs

SEC Sets Deadline for Modified S-1 Filings:

  • The SEC has set a deadline of December 29th for modified Bitcoin ETF applications.
  • Candidates must finalize and submit their S-1 filings to be considered in the first wave of approvals.
  • Latecomers will be excluded from this initial wave of approvals scheduled for early January.

A Deadline Set for December 29, 2023

The United States Securities and Exchange Commission (SEC) has established a deadline for applicants of a Bitcoin exchange-traded fund (ETF) in cash. These applicants must finalize their modified filings (S-1 forms) by December 29th.

This decision comes after a series of meetings on December 21st, involving representatives from major firms such as BlackRock, Grayscale Investments, ARK Investments, and 21 Shares, as well as representatives from potential exchanges for these new products, including Nasdaq and the Chicago Board Options Exchange.

This deadline is significant as it determines which candidates will be considered for the first wave of approvals for cash-backed Bitcoin ETFs, scheduled for early January. Filings that do not meet this deadline will be excluded from this initial opportunity.

“The SEC has told issuers that fully finalized and submitted applications by Friday will be reviewed in the first wave”

– reporter Eleanor Terrett

The SEC’s Requirements for Bitcoin Spot ETFs

The SEC has emphasized certain key requirements for applications. Specifically, applications must be fully finalized and filed by the deadline.

Furthermore, filings that mention in-kind creations will be rejected. Applicants are therefore encouraged to adopt a cash redemption model, replacing in-kind redemptions that involve non-monetary payments like Bitcoin.

Eric Balchunas, an ETF analyst at Bloomberg, highlights that securing an agreement with authorized participants (APs) is the final step to obtaining SEC approval for a cash-backed Bitcoin ETF. Authorized participants are key entities that play a role in the creation and redemption of ETF shares. As of December 22nd, none of the Bitcoin ETF applicants had managed to establish such an agreement with these authorized participants, although seven firms have already adjusted their redemption model to be cash-only, which is another important aspect of the approval process.

Despite these last-minute updates, Bloomberg analysts remain confident that the SEC will approve the first cash-backed Bitcoin ETFs by January 10th.

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