[NEWS] US SEC requests revised Bitcoin spot ETF application to be submitted by the 29th of this month; approval may be imminent

It has been reported that the U.S. Securities and Exchange Commission (SEC) has met with representatives of companies applying for a Bitcoin spot ETF and requested at least two of the companies to submit amended applications with final changes by the 29th of this month. Fox Business and other media reported on the 22nd.

This suggests that the move toward approval of a Bitcoin spot ETF is nearing the final stage.

According to the report, the SEC has requested the representatives of BlackRock, Grayscale, Ark 21Shares, and others who have been in discussions with the SEC regarding the final changes.

Regarding the approval of a Bitcoin spot ETF, the SEC will first decide on the application jointly submitted by Ark and 21Shares by January 10th of next year. If this ETF is approved by the deadline, it is expected that other Bitcoin spot ETFs that have also been applied for will likely be approved as well.

Executives of the two companies who met with the SEC said that the discussions are "highly confidential," but that the final deadline for submitting amended applications has been set for the 29th. Companies that miss this deadline are said to "not be able to get approval for a Bitcoin spot ETF in early January."

He also said that the SEC "may approve it on the first business day of 2024."

According to the meeting memo, representatives of exchanges where Bitcoin spot ETFs are likely to be traded, such as Nasdaq and Chicago Board Options Exchange (Cboe), and lawyers for issuing corporations also attended the meeting.

BlackRock and others have already submitted amended applications.

The SEC approved a Bitcoin futures ETF in 2021, but had previously rejected spot ETFs, citing the high risks of market manipulation and fraud.

However, since around October this year, momentum has been building toward the approval of a Bitcoin spot ETF, and a significant price increase has been seen in the cryptocurrency market.

Many analysts believe that the improvement in the situation is due in large part to the court's order to reexamine the SEC's refusal in August this year to convert Grayscale's Bitcoin Trust "GBTC" into an ETF.

Many issuing entities have made changes to the technical details of their ETFs in recent days. BlackRock and Ark also updated their filings this month to include cash redemptions, as the SEC has previously requested.

The final changes may include fee details. Ark and 21Shares are the only ones to disclose their fees, charging 0.80% for the joint ETF.

In the final updates, issuing entities will also include information on the amount they plan to use to seed the Bitcoin spot ETF. Those amounts will likely be small, but will likely increase once the Bitcoin spot ETF begins trading, according to people involved in the discussions.

These seeds are explained as a result of the need to invest capital in market makers to ensure that the initial market for the new ETF is liquid.

Reference: Fox Business
Image: Shutterstock

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