SEC could inform spot Bitcoin ETF applicants of approval by Jan. 3

The United States’ main securities regulator could inform spot Bitcoin ETF applicants of approval in the coming days, Reuters said on Dec. 29.

According to that report, the U.S. Securities and Exchange Commission (SEC) may tell applicants on Tuesday, Jan. 2 or Wednesday, Jan. 3 that they have clearance to launch their exchange-traded funds.

This would reportedly give those applicants time to prepare for launch on Jan. 10. The SEC must approve or reject an application from Ark/21Shares at that time but could also decide on other pending applications simultaneously.

At least a dozen asset managers intend to offer a spot Bitcoin ETF on various exchanges including Nasdaq, Cboe BZX, and NYSE Arca.

Reuters did not state which applicants are likely to receive approval but noted that several firms submitted amendments on Dec. 29 in line with a deadline for changes. Firms that submitted amendments then include BlackRock, VanEck, Valkyrie, Bitwise, Invesco, Fidelity, and WisdomTree; other firms including Ark Invest and Grayscale recently submitted amendments as well.

Asset managers engaged with SEC earlier

The Dec. 29 batch of amendments is just one example of recent engagement between the SEC and asset managers. Several applicants took part in a rare joint conference call with the SEC on Dec. 21 and attended earlier individual discussions; each firm has also submitted numerous previous amendments.

Recent discussions concern cash creations and redemptions. Many applicants initially aimed to allow in-kind creations and redemptions, which would allow some ETF participants to transact in Bitcoin. However, this feature appears unlikely to gain approval initially, as recent amendments instead emphasize cash models. Regardless, any spot Bitcoin ETF will require the fund or its partners to hold Bitcoin (BTC), thereby driving demand for the cryptocurrency.

Earlier matters concerned surveillance-sharing agreements and the prevention of market manipulation — issues that have largely been resolved.

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