SEC ordered that by December 29, issuers of spot Bitcoin ETFs must file final amendments to their S-1 product filings. This was reported by FOX Business.
The publication cites details of a discussion between the regulator and several companies.
During discussions, the Commission clarified that it intends to accept only documents that ‘structure ETF‘ and provide for redemptions exclusively in fiat.
Confirming the date for final amendments to all S-1s by Friday the 29th. The @SECGov has told issuers that applications that are fully finished and filed by Friday will be considered in the first wave. Anyone who is not will not be considered. In addition, the filings cannot… https://t.co/syyINu1BEI
— Eleanor Terrett (@EleanorTerrett) December 24, 2023
Applications that are refined and filed by Friday, December 29, will be considered in the first wave. Late submissions will not be considered. In addition, the applications must include a redemption in fiat form, otherwise they will be rejected, wrote FOX Business journalist Eleanor Terrett.
Reuters also reported on the deadline, citing two executives of issuing firms. Attendees at the discussions included representatives of trading venues, including Nasdaq and CBOE.
On December 22, Bloomberg analyst Eric Balchunas posted on X with a screenshot of the SEC’s ledger on spot Bitcoin ETF applications.
Latest snapshot of The ETF Cointucky Derby w new column for AP Agreement as SEC wants AP (who is also underwriter) named in next S-1 update (coming in next 10 days). This is no easy last step, and may keep some from starting gate. AP agreement + cash creates = approval @JSeyff pic.twitter.com/e8cgCuUBLN
— Eric Balchunas (@EricBalchunas) December 22, 2023
Notably, the redemption types ‘in-kind’ and ‘fiat’ are highlighted in red and green respectively. The column showing issuer fees for services remains unfilled.
This is not an easy last step, and it could deter some from launching,
Analysts predicted approval of the instrument by January 10, 2024. Their approaching launch may be signaled by the recent wave of updated documents on Bitcoin ETFs.
Hayes against the ETF
While the spot Bitcoin ETF is nearing the finish line, former BitMEX CEO Arthur Hayes published an article with warnings about the new product.
“Expression” is my last article of 2024. I offer some thoughts on expressions of the #crypto investment theme that will ultimately prove to be worthless.
May the Pump be with you!https://t.co/bG4ZnSjYu5 pic.twitter.com/nbru6yZlJD
— Arthur Hayes (@CryptoHayes) December 23, 2023
In his view, exchange-traded funds could ‘completely destroy’ Bitcoin if they are too successful.
He noted that Bitcoin has value because it ‘is moving.’ Yet ETFs are designed to ‘cleanse assets’ and ‘store them in a figurative safe.’
If issuers end up controlling all the coins and investors buy only derivatives rather than hodling, network transactions would fall and miners would have little incentive, Hayes said.
The former BitMEX CEO also suggested that in a worst-case scenario another decentralized network could replace the ‘dead’ Bitcoin.
People will again hold money assets and a financial system not controlled by the state. I hope that, the second time, we learn not to hand over our secret keys to Wall Street firms,
Earlier, analysts predicted that approval of a spot ETF based on the first cryptocurrency would lift the asset’s price to $54,000.
In December co-founder of Morgan Creek Digital Anthony Pompliano warned that the launch of a Bitcoin ETF would not double the price overnight.
As noted, the SEC is considering 13 applications for spot ETFs. On June 15 BlackRock sent the regulator the corresponding request. Following the financial giant, similar requests were received from Valkyrie, Fidelity Investments, WisdomTree and Invesco.
On August 31, the Commission delayed the decision on several Bitcoin funds at least until mid-October. In late September, the agency moved the consideration of the applications to January 2024.