SEC sets strict year-end deadline for final changes to spot Bitcoin ETFs, confirms first wave of approvals to come in January

The Securities and Exchange Commission (SEC) has set a strict year-end deadline for final changes to spot Bitcoin exchange-traded funds (ETFs). The SEC confirmed that the first wave of approvals for these ETFs will come in January. SEC officials stated in a recent meeting with issuers that any firm missing the deadline will not be included in the initial wave of potential approvals in January 2024. This development emerged from a high-level meeting on December 21, where SEC officials engaged with representatives from leading financial entities. The representatives included BlackRock, Grayscale Investments, ARK Investments, and 21 Shares. Representatives from exchanges such as Nasdaq and Cboe, as well as lawyers for the issuers, also attended the meetings. The SEC plans to begin approving the ETF applications in early January. The final submissions from the companies are expected to address comprehensive details, including technical specifications, fee structures, and initial funding strategies for these ETFs. ARK and 21 Shares have disclosed their proposed fee, setting it at 0.80% for their collaborative ETF. The industry is eagerly awaiting the decision on ARK and 21 Shares’ joint ETF proposal, which is due by January 10, 2024. It is believed that the SEC might approve multiple applications simultaneously, potentially paving the way for the first-ever spot Bitcoin ETFs in the U.S. market. This deadline marks a crucial shift in the SEC’s approach to overseeing the cryptocurrency market. Historically cautious, the SEC has previously rejected numerous applications for spot Bitcoin ETFs, citing concerns over market manipulation and investor protection. However, recent developments, including a federal court ruling against the SEC’s rejection of Grayscale’s ETF proposal, indicate a possible change in regulatory perspectives. The introduction of spot Bitcoin ETFs could represent a watershed moment, offering a regulated pathway for mainstream investors to enter the crypto market. The cryptocurrency industry and financial markets are eagerly awaiting the SEC’s decisions in early January, which could potentially herald a new era in cryptocurrency investment and further integrate digital currencies into the global financial system.