In a groundbreaking move, the United States Securities and Exchange Commission (SEC) has announced a series of crucial updates about the approval process for spot Bitcoin exchange-traded funds (ETFs) set for January 2024.
The SEC has disclosed that only firms submitting their final S-1 amendment forms by the December 29, 2023 deadline will be considered for the initial wave of potential spot Bitcoin ETF issuers. Failure to meet this deadline will exclude applicants from the first wave.
A confirmation has been issued for the date for final amendments to all S-1s by Friday the 29th. The @SECGov has informed issuers that applications fully finished and filed by Friday will be considered in the first wave. Those that are not will not be considered. Additionally, the filings cannot be delayed any further. https://t.co/syyINu1BEI
— Eleanor Terrett (@EleanorTerrett) December 24, 2023 Elimination of ‘In-Kind’ Creation Model
The SEC’s firm stance on the elimination of the ‘in-kind’ creation model signifies a significant development. All applicants have been urged to remove any ‘in-kind’ directives from their spot Bitcoin ETF prospectuses and instead adhere to the “Cash Creates” redemption model.
As of now, prominent firms such as BlackRock, Bitwise, and VanEck have already submitted their S-1 amendment forms, with other applicants, including Grayscale, following suit.
Prime Execution Agent Model and Regulatory Adjustments
Market watchers are closely monitoring the SEC’s stance regarding the Prime Execution Agent model, which will likely necessitate adjustments from companies like BlackRock. This shift marks a notable departure from the SEC’s traditionally conservative stance, signifying a more proactive approach to cryptocurrencies.
Excitement abounds in the crypto market as we anticipate further updates and potential approval of spot Bitcoin ETFs in the coming weeks. Stay tuned for more breaking news on this groundbreaking development in the world of digital assets.
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Elena R
Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing – accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.