SEC sets December 29th deadline for spot Bitcoin ETF renewal

The U.S. Securities and Exchange Commission has set a deadline of Dec. 29 for spot bitcoin ETF applicants to submit final S-1 amendments, Reuters reported, citing a public memo and two people familiar with the matter.

SEC officials reportedly met on Dec. 21 with representatives from at least seven companies looking to launch a spot Bitcoin ETF in early 2024. Some of the attendees of those meetings included representatives from BlackRock, Grayscale Investments, ARK Invest, and 21 Shares.

Also attending the meeting were reportedly representatives from exchanges that could potentially list new products, including Nasdaq and the Chicago Board Options Exchange, as well as lawyers and issuers.

The regulator reportedly told attendees that any issuer that fails to complete its S-1 amendment by the Dec. 29 deadline will not be included in the first wave of potential spot Bitcoin ETF approvals in early January.

Fox Business reporter Eleanor Terrett was among the first to report the deadline. Terrett later confirmed the date for final amendments to all S-1s to be submitted by December 29.

“The SEC is telling issuers that fully completed and submitted applications by Friday will be considered in the first wave,” the reporter wrote on X, formerly Twitter.

As previously reported, multiple spot Bitcoin ETF filers have been rushing to update their S-1 filings with a cash redemption model to replace in-kind redemptions, meaning non-monetary payments like Bitcoin.

In addition to the cash-only requirement, the SEC reportedly wants Bitcoin ETF filers to list the names of authorized participants (APs) in their filings. Bloomberg ETF analyst Eric Balchunas said the AP agreement would be the final hurdle for a spot Bitcoin ETF.

“This is not an easy final step and may keep some from getting started. AP Agreement + Cash Creation = Approval, ” Balchunas wrote on X. According to Balchunas, as of Dec. 22, no spot bitcoin ETF filer had signed an AP Agreement, while seven companies had changed the redemption model strictly to cash.

Despite several companies making last-minute updates to their spot Bitcoin ETF filers, Bloomberg analysts remain confident the SEC will approve the first batch of spot Bitcoin ETFs by January 10.