The Securities and Exchange Commission (SEC) has established a critical deadline of December 29, 2023, for applicants seeking approval for spot Bitcoin exchange-traded funds (ETFs).
According to Reuters, the SEC recently convened with representatives from at least seven companies vying for approval of their spot Bitcoin ETFs, urging at least two of them to make final amendments to their applications by the impending deadline.
Representatives from Nasdaq and Cboe were also present during this significant meeting.
Among the companies actively seeking SEC approval for spot Bitcoin ETFs are notable names such as ARK Investments, 21 Shares, and Grayscale Investments.
Additionally, BlackRock, a titan in the traditional finance sector, has also submitted an application for endorsement of a Bitcoin ETF.
The SEC has received a total of approximately 13 applications for the authorization of this crypto investment instrument.
In recent developments, both BlackRock and Bitwise revised their applications for spot Bitcoin ETF approval in response to regulatory inquiries earlier this month.
A few weeks prior to that, Grayscale also made amendments to its application, signaling the industry’s eagerness to meet regulatory requirements.
The SEC has, for several years, consistently postponed or denied approval for a spot Bitcoin ETF.
The regulator is now slated to make a decision on the proposals submitted by ARK and 21 Shares by January 10, 2024.
Encouragingly, key players within the crypto industry maintain an optimistic outlook, believing that this time the SEC might grant approval for the spot Bitcoin ETF.
If granted approval, the spot Bitcoin ETF would become a tradable asset on stock exchanges, akin to company stocks.
This would enable retail investors to easily trade Bitcoin ETFs using conventional brokerage accounts, eliminating the need for specialized crypto exchange accounts.
The advent of such ETFs is expected to simplify and increase retail investment in the crypto market, thereby boosting demand.
While the specific nature of the amendments sought by the SEC remains undisclosed, previous updates have included changes such as replacing non-monetary payments with cash for redemptions.
Additionally, the regulator is reportedly requiring the applications to identify authorized participants (APs), adding to the ongoing regulatory scrutiny and refinement of the spot Bitcoin ETF landscape.