SEC approval process for first wave of spot Bitcoin ETFs is about to end

The deadline given by the SEC is only for the S-1 spot BTC ETF.

Source: Bitcoinist

Compiled by: Blockchain Knight

The SEC (U.S. Securities and Exchange Commission) has revealed key dates for approval of the application process for a spot BTC ETF, which is expected to launch in January 2024.

Fox Business reporter and producer Eleanor Terrett recently shared on X (formerly Twitter) that the deadline for the spot BTC ETF approval process provided by the SEC is December 29, 2023.

However, the deadline given by the SEC is only for the S-1 (first batch) spot BTC ETF. In addition, Terrett also emphasized the SEC’s first wave of approval process.

The SEC has now disclosed that the first wave of issuers who may have access to spot BTC ETFs will only be companies that can successfully file a final S-1 amended form by December 29. Therefore, applicants who fail to submit by the deadline will not be considered for the first wave.

Terrett also noted that the in-kind redemption method provided by the applicant should not be included in the S-1 filing. The SEC has warned that any application that includes this information in filings will be rejected.

The specific post content is as follows:

“We confirm Friday the 29th as the date for final revisions to all S-1 applications. @SECGov has informed issuers that applications completed and submitted by Friday will be considered in the first wave, otherwise they will not be considered. In addition, the application documents must not mention physical redemption, otherwise they will be rejected.”

This is not surprising, as the SEC has been proactively communicating with all applicants to inform them to remove any reference to “physical objects” in spot BTC ETF applications. Thus, these companies must follow a “cash” redemption strategy set by regulators.

Under this model, authorized participants can deposit funds into the ETF in an amount up to the net asset value of the units generated. These funds are then used to purchase assets, in this case BTC.

So far, two well-known companies, BlackRock and Bitwise, have taken the initiative, filing S-1 amendments on December 4, 2023**. VanEck also joined the fray on December 8, filing a fifth S-1 amendment form.

BlackRock, the world’s largest asset management company, recently revealed plans to bring in $10 million in seed funding for its spot BTC ETF. Bloomberg Intelligence analyst James Seyffart shared this latest news with the Crypto asset community on social media platform X.

The seed fund’s goal is to accelerate the creation and launch of its ETFs. BlackRock’s $10 million seed funding demonstrates its firm determination to lead the spot BTC ETF market. However, Seyffart also revealed that BlackRock Seed Fund does not indicate that the company may launch a spot BTC ETF.

Proceeds from the Seed Fund program are expected to be January 3, 2023, but this is not set in stone as plans are subject to change.