The United States Securities and Exchange Commission (SEC) has revealed a crucial date for the process of approving Bitcoin Spot Exchange-Traded Funds (ETFs) for applicants which are anticipated to launch in January 2024.
Deadline For Bitcoin Spot ETF Applicants
Eleanor Terrett, a Fox Business journalist and producer recently took to X (formerly Twitter) to share the date on the Bitcoin Spot ETF approval process provided by the US regulator, which is December 29, 2023.
However, the deadline given by the US regulator is for all the S-1 Bitcoin Spot ETFs. Terrett also highlighted a first-wave process of approval by the regulatory watchdog.
It has now been disclosed by the SEC that the first wave of possible spot Bitcoin ETF issuers will only include companies that can successfully file their final S-1 amendment forms by the approaching deadline. Thus, an applicant will not be considered for the first wave if they fail to meet this deadline.
The Fox Business journalist also pointed out the in-kind redemption method provided by the applicants as it should not be included in the S-1 filings. The US regulator has issued a warning that any applicant that includes this in their filings will be turned down.
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 mention in-kind creation or they will be rejected.
This is not surprising as the SEC has been proactively communicating with all applicants, informing them to take out any references to “in-kind” in their spot Bitcoin ETF applications. Therefore, the companies must follow the “Cash Creates” redemption strategy mandated by the regulatory watchdog.
In this model, authorized participants can deposit money into the ETF up to the net asset value of the units that will be generated. The funds are then used to purchase the asset, which in this case is Bitcoin.
So far, two well-known companies such as BlackRock and Bitwise have taken the initiative by submitting their S-1 modification paperwork on December 4, 2023. VanEck also entered the fray on December 8, filing its fifth S-1 amendment form.
Blackrock Initiates $10 Million Seed Fund
The world’s largest asset manager, Blackrock, recently revealed its plans to introduce a $10 million seed funding for its spot Bitcoin ETF. Bloomberg intelligence analyst James Seyffart shared the update with the crypto community on the social media platform X.
The goal of the seed fund is to speed up the creation and introduction of its ETF. BlackRock’s $10 million seed fund demonstrates its firm dedication to leading the Spot Bitcoin ETF market. However, Seyffart also revealed that the Blackrock seed fund does not suggest a possible launch of the firm’s BTC spot ETF.
The proceeds of the seed creation basket are expected on January 3, 2023, but this is not set in stone as the plans could change at any point.
Featured image from iStock, chart from Tradingview.com
