The U.S. Securities and Exchange Commission (SEC) set a crucial deadline for spot Bitcoin ETF applicants, requiring final S-1 amendments by Dec. 29.
This deadline could unveil the first wave of potential approvals in early January. Of the 14 applicants, some updated filings with a cash-create redemption model, favored by the SEC to limit intermediaries handling actual Bitcoin.
Bloomberg’s Eric Balchunas revealed that as of Dec. 22, seven applicants had adopted the cash-create model, while the others retained both cash-create and in-kind methods.
The SEC aims to minimize intermediaries accessing Bitcoin during redemption, emphasizing a more closed system. The deadline also mandates ETF applicants to have an authorized participant (AP) in place.
Leading trading giants, Jane Street and Virtu Financial, are expected to play crucial roles as APs. The community awaits these developments as anticipation grows for potential spot Bitcoin ETF approvals.
The SEC’s push for a cash-create redemption model in spot Bitcoin ETFs reflects a desire to streamline and control the process, potentially signaling a pivotal shift in crypto investment dynamics.