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SEC Establishes Crucial Deadline for Spot Bitcoin ETF Filings on December 29

Applicants vying for the approval of a spot Bitcoin exchange-traded fund (ETF) are facing a critical deadline set by the United States Securities and Exchange Commission (SEC). Those who fail to meet the December 29 deadline risk exclusion from the initial round of potential approvals for spot Bitcoin ETFs in early January.

As reported by Reuters, the SEC has mandated that spot Bitcoin ETF applicants must submit their final S-1 amendments by December 29, according to public memos and sources familiar with the matter. Representatives from at least seven firms, including major players like BlackRock, Grayscale Investments, ARK Invest, and 21 Shares, engaged in discussions with SEC officials during a meeting held on December 21. Notable attendees also included representatives from Nasdaq and the Chicago Board Options Exchange, along with legal professionals and issuers.

During these meetings, regulators made it clear that issuers failing to meet the December 29 deadline would not be included in the initial batch of potential spot Bitcoin ETF approvals expected in early January.

Fox Business journalist Eleanor Terrett initially reported on the deadline and later confirmed the December 29 date for the final amendments to all S-1 filings. In a post on X (formerly Twitter), Terrett highlighted that fully completed applications filed by the specified deadline would be considered in the first wave. She emphasized that filings referencing in-kind creation would be rejected.

Multiple spot Bitcoin ETF applicants have been hastily updating their S-1 filings to adopt the cash redemption model, replacing in-kind redemptions that involve non-monetary payments like Bitcoin.

In addition to the cash-only requirement, the SEC is reportedly seeking transparency regarding the authorized participants (AP) in the filings. Bloomberg ETF analyst Eric Balchunas noted that securing the AP agreement represents the final hurdle for spot Bitcoin ETFs.

Balchunas stated, “This is no easy last step, and may keep some from starting gate. AP agreement + cash creates = approval.” As of December 22, none of the spot Bitcoin ETF applicants had the AP agreement in place, although seven firms had shifted to a cash-only redemption model, according to Balchunas.

Despite the last-minute updates from several firms, Bloomberg analysts remain optimistic that the SEC will grant approval for the first spot Bitcoin ETFs by January 10.

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