According to a report on December 21, the US Securities and Exchange Commission (SEC) is said to be talking to multiple spot Bitcoin ETF applicants at the same time.
FOX Business correspondent Charles Gasparino wrote on X:
“SCOOP: [The SEC] consists of holding a so-called rare joint conference call with potential “spot” employees. [Bitcoin] ETF applicants as the closely watched decision on whether to issue them looms [companies] green light to sell access to crypto to retail investors.”
Eleanor Terret, also a FOX correspondent, said the call was about ensuring applicants commit to a cash creation model. Terret added that the SEC told filers to “remove from their filings all references to in-kind redemptions.”
A tangible asset model would enable certain Bitcoin transactions between participants in the ETF industry. In recent updates to BlackRock's filings, mention of in-kind benefits has already been replaced with cash, but there remains room for an in-kind benefit model, pending approval.
None of the parties involved have publicly confirmed the above call. The SEC has previously confirmed individual meetings, although not always immediately.
The deadline is January 10th
The rumored conference call may indicate that the SEC could soon decide on spot Bitcoin ETF applications. Many experts assume that this will be the case by January 10, 2024.
FOX Business itself has supported expectations of ETF approval in the new year. In a December 20 article, Gasparino and Terret wrote that sources close to various companies expect an ETF to be approved by January 10. So far, the January deadline has largely been mentioned by members of independent companies and news sources rather than corporate insiders.
Most sources expect approval by Jan. 10, based on public knowledge of a deadline by which the SEC must decide on an application from Ark Invest. Meetings between the regulator and numerous applicants and filing updates also provide optimism, particularly given the SEC's engagement with BlackRock, the most prominent of the current ETF applicants.
Separately, a court order obtained by Grayscale requires the SEC to review (but not approve) its application. This has also led to optimism.
Despite widespread expectations about the approvals, the SEC could reject any application in January. No spot Bitcoin ETF has been approved yet.
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