The US Securities and Exchange Commission (SEC) has reportedly set a deadline for the final changes to Bitcoin exchange-traded funds (ETFs) applications before it. According to a recent report, the SEC has informed representatives of seven firms looking to list a spot Bitcoin ETF that they must file the final changes to their proposals by December 29, 2023.
This news comes amidst a flurry of activity within the regulatory agency, as multiple meetings have taken place with representatives from BlackRock, Grayscale Investments, ARK Investments, and 21 Shares, among other companies this past week. The most recent meeting, held on December 22, saw the agency instructing applicants to file any changes by December 29. The SEC has been pushing for cash creation and redemption models for the spot Bitcoin ETF, and has encouraged companies to incorporate these models into their final filings.
In addition to the cash redemption models, other aspects likely expected in the final filings could include details about fees and “seeds.” BlackRock, for instance, is reportedly planning to increase the initial $100,000 seed for their iShares Bitcoin Trust (IBIT) ETF to $10 million by January 3, 2024.
The SEC is expected to make a final decision on the Ark Invest/21 Shares Bitcoin ETF proposal on January 10, 2024. The crypto market has become increasingly bullish on the possibility that the SEC could approve multiple spot Bitcoin ETFs simultaneously. As a result, Bitcoin price continues to hover above $43,000, with analysts predicting a potential breakout on ETF approval. Many believe that this, combined with the upcoming Bitcoin halving and the current macroeconomic environment, could lead to a bull market rally to prices of $120,000 or higher in 2024.
Overall, the final changes to spot Bitcoin ETF filings are expected to set the stage for a pivotal moment in the cryptocurrency and ETF markets. The outcome of these filings and the subsequent SEC decisions are likely to have a significant impact on the future of Bitcoin and the broader digital asset space. It’s a development that cryptocurrency enthusiasts and investors will undoubtedly be closely monitoring in the months to come.