Journalist
Posted:
- A decision on the ETF application from ARK and 21 Shares will be made on January 10.
- Companies that miss this cut-off date will not be eligible for the first wave of approvals in January 2024.
The crypto market was buzzing with optimism about spot Bitcoin [BTC] exchange-traded fund (ETF) applications, most of which are expected to be greenlit as early as January 2024.
Amid these developments, the U.S. Securities and Exchange Commission (SEC) has issued important guidance for companies seeking to get their ETFs approved in the “first wave” of potential approvals.
SEC sets deadline for final changes
According to Fox Business journalist Eleanor Terrett, the regulator has set December 29 as the deadline for submitting final changes to the respective filings.
Terrett quoted the SEC as saying that companies that miss this cut-off date will not be eligible for the first wave.
Confirmation of date for final changes to all S-1s by Friday the 29th. The @SECGov has told issuers that applications fully completed and submitted on Friday will be considered in the first wave. Anyone who is not will not be considered. Moreover, the declarations cannot… https://t.co/syyINu1BEI
—Eleanor Terrett (@EleanorTerrett) December 24, 2023
The decision was taken after a high-level meeting on December 21. The meeting was attended by representatives from BlackRock, Grayscale Investments, ARK Investments and 21 Shares.
Lots to look forward to
Please note that the final deadline for the SEC to decide spot ETF applications for most applicants is in January. A decision on the joint proposal from ARK and 21 Shares will be made on January 10.
Grayscale’s proposed conversion of its trust (GBTC) into an ETF was due to be decided on January 25. Recall that a court ruling earlier this year ordered the SEC to reconsider its earlier rejection of the proposed ETF.
The legal victory was a major catalyst not only for boosting Grayscale’s ETF hopes.
A Bitcoin ETF allows investors to gain exposure to Bitcoin’s price movements without actually owning the asset directly. So when investors buy shares of a spot ETF, they are essentially buying a representation of actual Bitcoin.
Needless to say, such an arrangement creates strong demand for Bitcoin in the traditional market. Furthermore, TradFi investors would find a hassle-free way to trade digital assets.
How much are 1,10,100 BTCs worth today?
Is a super cycle coming?
Popular on-chain analytics company CryptoQuant had previously predicted a capital inflow of $155 billion into the Bitcoin market following the approval of the ETFs.
Furthermore, if the market cap increases in the manner indicated above, this could send Bitcoin’s price to somewhere between $50,000 and $73,000.