Deadline Set for Final Filings
Executives from two of the companies, who preferred to remain anonymous due to the confidential nature of the discussions, revealed that the SEC mandated a December 29 deadline for final updates to their filings. Regulators informed the meeting attendees that any issuer failing to meet this timeline would not be included in the initial wave of potential spot bitcoin ETF approvals in early January. The December 29 cutoff was initially reported by Fox Business. Representatives from exchanges where the ETFs may trade, such as Nasdaq and Cboe, as well as legal representatives for the issuers, were also present at the meetings according to the meeting memos.
Changing Stance on Spot Bitcoin ETFs
The SEC has previously rejected numerous applications for spot bitcoin ETFs due to concerns over market manipulation in the cryptocurrency space. To date, the agency has only approved cryptocurrency ETFs linked to bitcoin and ethereum futures contracts on the Chicago Mercantile Exchange. However, recent developments indicate a shifting stance, as regulators appear increasingly open to approving some of the 13 proposed spot bitcoin ETFs. Sources who participated in the SEC meetings stated that the agency hinted at potential approval in the first few business days of 2024. If granted, the SEC would inform issuers directly of the effective launch date for each proposed ETF. Both BlackRock and ARK updated their filings this week to allow cash redemptions in response to regulators’ requests.
Final modifications to the filings are likely to include fee details. Currently, ARK and 21 Shares are the only issuers to disclose their proposed fee for their joint ETF, set at 0.80%. Parties involved in the discussions anticipate these fees to be relatively small initially but to increase significantly once the ETFs commence trading.