The United States Securities and Exchange Commission (SEC) has revealed a crucial date for the approval process bitcoin Spot Exchange Traded Funds (ETFs) for applicants scheduled to launch in January 2024.
Deadline for bitcoin Spot ETF Applicants
Fox Business journalist and producer Eleanor Terrett recently visited X (formerly Twitter) to share the bitcoin Spot ETF approval process date provided by the US regulator, which is December 29, 2023.
However, the deadline given by the US regulator is for all S-1 bitcoin Spot ETFs. Terrett also highlighted a first-wave approval process by the regulatory watchdog.
It has now been revealed by the SECOND that the first wave of potential bitcoin ETF spot issuers will only include companies that can successfully file their final S-1 amendment forms before the approaching deadline. Therefore, an applicant will not be considered for the first wave if they do not 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 applicants who include this in their applications will be rejected.
The post said:
Confirming the date for final amendments to all S-1s by Friday the 29th. The @SECGov has told issuers that applications that are fully finalized and submitted by Friday will be considered in the first wave. Whoever is not will not be considered. Additionally, submissions cannot mention creation in kind or they will be rejected.
This is not surprising, as the SEC has been proactively communicating with all applicants, informing them to remove any references to “in-kind” in their bitcoin ETF timely applications. Therefore, companies must follow the “Cash Creates” refund 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 to 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 lead by filing their S-1 amendment paperwork on December 4, 2023. VanEck also entered the scene on December 8, filing its fifth S-1 amendment form.
Blackrock launches $10 million seed fund
The world's largest asset manager, Black Rock, recently revealed its plans to introduce $10 million in seed funding for its bitcoin spot ETF. James Seyffart, Bloomberg Intelligence Analyst shared the update with the crypto community on the X social media platform.
The goal of the seed fund is to accelerate the creation and introduction of your ETF. BlackRock's $10 million seed fund demonstrates its steadfast dedication to leading the bitcoin Spot ETF market. However, Seyffart also revealed that Blackrock's seed fund does not suggest a possible launch of the company's btc spot ETF.
Seed Creation Basket proceeds are expected to arrive on January 3, 2023, but this is not set in stone as plans could change at any time.
Featured image from iStock, chart from Tradingview.com
