Race for Bitcoin ETFs heats up as SEC issues deadline

Journalist

Posted: December 26, 2023

• ARK and 21 Shares’ ETF application will be decided by the 10th of January.
• Firms missing this cut-off date won’t be considered for the first wave of approvals in January 2024.

The crypto market was abuzz with optimism over spot Bitcoin [BTC] exchange-traded fund (ETF) applications, most of which are expected to be green-lighted as early as January 2024.

Amidst the buildup, the United States Securities and Exchange Commission (SEC) issued an important directive for firms aiming to get their ETFs approved in the “first wave” of potential approvals.

SEC fixes the deadline for final amendments

The regulator has fixed the 29th of December as the deadline for submitting final changes to respective filings, according to a Fox Business journalist, Eleanor Terrett.

Terrett quoted the SEC as saying that firms missing this cut-off date won’t be considered for the first wave.

Confirming the date for final amendments to all S-1s by Friday the 29th. The @SECGov has told issuers that applications that are fully finished and filed by Friday will be considered in the first wave. Anyone who is not will not be considered. In addition, the filings cannot… https://t.co/syyINu1BEI

— Eleanor Terrett (@EleanorTerrett) December 24, 2023

The decision was made after a high-level meeting on the 21st of December. The meeting was attended by representatives of BlackRock, Grayscale Investments, ARK Investments, and 21 Shares.

Lots to look forward to

Note that the final deadline for the SEC to decide on spot ETF applications falls in January for most of the applicants. The joint proposal from ARK and 21 Shares, is due for a decision on the 10th of January.

Grayscale’s proposed conversion of its trust (GBTC) into an ETF would be decided upon by the 25th of January. Recall that a court ruling earlier this year directed the SEC to reconsider its earlier rejection of the proposed ETF.

The legal win was a major catalyst, not only for boosting Grayscale’s ETF hopes.

A Bitcoin ETF allows investors to gain exposure to the price movements of Bitcoin without actually owning the asset directly. So, when investors purchase shares of a spot ETF, they are essentially buying a representation of actual Bitcoin.

Needless to say, such an arrangement creates a strong demand for Bitcoin in the traditional market. Moreover, TradFi investors would find a hassle-free way to trade in digital assets.

How much are 1,10,100 BTCs worth today?

Is a super cycle on the way?

Popular on-chain analytics firm CryptoQuant had earlier predicted capital inflows of $155 billion into the Bitcoin market upon clearance of the ETFs.

Moreover, if the market cap increases in the manner highlighted above, it could send Bitcoin’s price to somewhere between $50,000 and $73,000.