JAKARTA A number of companies planning to launch a Bitcoin Spot exchange-traded fund (ETF) in the United States (US) are still waiting for a decision from the Securities and Exchange Commission (SEC). They were asked to complete changes to their registration statement (S-1) on December 29 in order to be considered in the first batch of the bitcoin ETF decision.
The Bitcoin Spot ETF is an investment product that follows bitcoin prices in the spot market. This product is expected to increase bitcoin liquidity and accessibility for retail and institutional investors. Until this news was published, the SEC had not approved this product for risk reasons, volatility, and market manipulation.
According to Fox Business journalist terrett, the SEC has notified publishers that fully completed and submitted apps on Friday will be considered in the first batch. Those who will not be ignored. Terrett shared this information on social media platform X on December 24.
Terrett also revealed that the SEC emphasizes to applicants that their ETF spot application should use a cash creation method instead of in-kind. Cash creation methods mean ETF publishers must buy and sell bitcoin directly in the spot market. The in-kind creation method means the ETF issuer can exchange bitcoins with ETF shares without involving cash.
Several companies that submitted Bitcoin Spto's ETF proposals, including Blackrock, the world's largest asset manager, initially planned to use the in-kind model. They claim that this model is more efficient and secure. However, after failing to convince the SEC, Blackrock turned its model into a cash creation in its latest amendments.
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Meet SEC
On Thursday, SEC officials held a meeting with representatives of seven companies seeking to launch spot bitcoin ETFs early next year. These companies include Blackrock, Grayscale Investments, ARK Invest, and 21shares. The meeting also involved representatives from the ETF spot spot exchange that can be traded, such as Nasdaq and Cboe.
Two executives involved in the meeting told Reuters that the SEC suggested approval for the proposed ETF could come on the first few working days of 2024. They also said that publishers would be notified directly about the effective date of their ETF launch request.
The first deadline for the spot's ETF decision is January 10, 2024, for submitting Bitcoin spot ETFs from Ark and 21shares. There are currently 13 Bitcoin spot ETF proposals that are still awaiting approval from the SEC.
Blackrock recently revealed its plans to fund its $10 million spot bitcoin ETF (IDR 154.1 billion) on January 3. Former SEC internet enforcement chief, John Reed Stark, said agreeing to a spot bitcoin ETF could be SEC Chair Gary Gensler's legacy. Gensler issued a warning about investing in crypto last week amid high anticipation of bitcoin's ETF approval.
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