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Deadline for Spot Bitcoin ETF Applicants Set by SEC – Only 3 Days Remaining to Update Filings for an Early January Review

The SEC Gives Spot Bitcoin ETF Applicants a Deadline

The United States’ financial watchdog, the Securities and Exchange Commission (SEC), has reportedly handed down a deadline for spot bitcoin exchange-traded fund (ETF) candidates to finalize their amendments to their applications. With the clock ticking, the applicants have until December 29th to ensure their revisions are ready to be considered for the first round of spot Bitcoin ETF decisions.

As the buzz around the various social media platforms last week revealed, the SEC is nudging applicants whose applications are complete and filed by the looming end-of-year deadline will be among those considered first. Any applicants who miss this deadline won’t be given first consideration. The importance of this deadline cannot be overstated.

Another important revelation has been the SEC’s insistence that the spot Bitcoin ETF applications cannot include the ‘in-kind’ creation method, and favors the ‘cash creation method.’ If any application mentions the ‘in-kind’ option, they will be outrightly rejected. This comes as a significant blow to the world’s biggest asset manager, Blackrock, and several other applicants who were arguing in favor of the ‘in-kind’ model.

The Position Taken by Some Huge Industry Players

However, despite their arguments and propositions of an alternative model, they were unable to persuade the SEC. Unfortunately, Blackrock has had to revise their strategy accordingly and has also adopted the cash creation method in their latest amendment.

High-ranking officials from the SEC held meetings last week with representatives from a minimum of seven companies all eyeing the possibility of launching a spot Bitcoin ETF in early 2024. Notable among these were Blackrock, Grayscale Investments, ARK Invest, 21shares, and some representatives from the exchange where these ETFs may trade in the future such as Nasdaq and Cboe.

The conversations hinted at the possibility of approvals for the proposed ETFs being potentially granted in the first couple of business days of 2024. However, the utterances are speculative.

The Prospects for Spot Bitcoin ETFs

Currently, the SEC has 13 pending spot bitcoin ETF applications on its hands. Despite the rigors and near-misses of some applicants, many are still hopeful. Quite a few expect multiple Spot bitcoin ETFs will be approved in one fell swoop.

In recent news, Blackrock revealed its intentions to seed its spot Bitcoin ETF with a flat rate of $10 million on the 2nd date of the New Year. The legacy of SEC Chair Gary Gensler could be influenced significantly by the approval of these spot Bitcoin ETFs, as some believe. Despite the enthusiastic anticipation, Gensler has issued a caution about venturing into crypto, due to its volatile nature.

How Quamas app can assist with Bitcoin ETF trading

Evidently, navigating the complexities of the Bitcoin ETF market can be daunting. But with the right tools, the process could be significantly simplified. That’s where the quamas app comes in. This innovative tool offers real-time tracking of your investments, insightful analyses, and valuable tips on making the most of your Bitcoin ETF trades. If you’re an enthusiastic trader or a new applicant in the world of Spot Bitcoin ETFs, harnessing the features of the quamas app could highly benefit you.

The developments on the ETF front continue to take twists and turns. But, whatever your views on the December 29th deadline or the potential multiple spot Bitcoin ETF approvals in the New Year, one thing is clear: the journey to approval is far from straightforward, and with every update or development, the prospects change drastically.

Frequently asked Questions

1. What is the deadline for spot Bitcoin ETF applicants to update their filings?

The deadline for spot Bitcoin ETF applicants to update their filings is set by the SEC, with only 3 days remaining to submit updates for an early January review.

2. What is a spot Bitcoin ETF?

A spot Bitcoin ETF is an exchange-traded fund that tracks the price of Bitcoin in real-time or “spot” prices. It allows investors to gain exposure to Bitcoin without directly owning the cryptocurrency.

3. How are spot Bitcoin ETF applicants notified of the deadline?

Spot Bitcoin ETF applicants are informed of the deadline for updating their filings by the Securities and Exchange Commission (SEC). The SEC sets the deadline to ensure a timely and efficient review process.

4. What happens if spot Bitcoin ETF applicants fail to update their filings by the deadline?

If spot Bitcoin ETF applicants fail to update their filings by the deadline, their applications may be delayed or rejected. It is crucial for applicants to adhere to the SEC’s timeline to maintain their chances of receiving approval for the ETF.

5. Can the deadline for spot Bitcoin ETF applicants be extended?

The deadline for spot Bitcoin ETF applicants is determined by the SEC and can be subject to extension in certain circumstances. However, if no extension is granted, applicants must ensure timely submission to avoid potential setbacks.

6. What is the significance of an early January review for spot Bitcoin ETF applicants?

An early January review holds significance for spot Bitcoin ETF applicants as it allows them to potentially receive approval or further feedback from the SEC at an earlier stage. This enables them to enter the market sooner and capitalize on the growing interest in Bitcoin.

7. What are the potential benefits of a spot Bitcoin ETF?

A spot Bitcoin ETF offers several potential benefits, including increased accessibility for retail investors, improved liquidity for the cryptocurrency market, and a regulated investment vehicle for institutions seeking exposure to Bitcoin.