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WASHINGTON – The U.S. Securities and Exchange Commission (SEC) has set a December 29 deadline for final amendments to Bitcoin Spot exchange-traded fund (ETF) applications. Only Bitcoin ETF issuers that meet this deadline will be considered for the first wave of approval in January 2024, with announcements expected early that month.
This development is being closely followed by major financial institutions such as BlackRock (NYSE:), Fidelity and ARK Investments, all of whom are set to launch their own Bitcoin ETFs as soon as they receive the green light from the regulator. Today, BlackRock and ARK complied with SEC guidance by amending their S-1 submissions to incorporate a cash creation and redemption process for the proposed Bitcoin spot ETFs – a strategic pivot aimed at obtaining consent of the regulatory body. This change reflects their intensive interactions with SEC officials and strict adherence to regulatory requirements.
An important stipulation highlighted by Bloomberg Intelligence suggests that issuers must now provide an authorized participant agreement in their applications. This requirement signals a rigorous compliance step, essential to obtaining SEC approval. Despite these proactive steps taken by various issuers, formal comments from the SEC on individual applications are still pending. Observations from industry analysts suggest that meeting these strict conditions is likely key to the successful inclusion of applicants in upcoming approvals.
Unlike their futures-based counterparts, spot Bitcoin ETFs are directly tied to the current price of . This could provide an easier way for investors to gain exposure to bitcoin price movements while mitigating some of the risks associated with direct ownership, such as security and custody.
Today, bitcoin valuation saw a slight decline of 1.07%, trading at $43,168.51; however, it maintained an upward trajectory over the previous week with a cumulative gain of 5.01%. Despite fluctuations in value and increased scrutiny of the risk factors inherent in Bitcoin ETFs – particularly money laundering concerns related to the previously favored in-kind model – the cryptocurrency has maintained a solid market capitalization of 844. 93 billion dollars.
The investment community will closely monitor these developments today and beyond, potentially heralding a new era in crypto-based investment options.
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