The Securities and Exchange Commission (SEC) held meetings on Thursday, indicating it is finally prepared to approve spot bitcoin exchange-traded funds (ETFs) in early 2024. The potential shift comes after years of rejecting such proposals due to concerns over cryptocurrency market manipulation.
According to a recent report, representatives from at least seven firms hoping to launch spot bitcoin ETFs met with SEC officials, including major players like BlackRock and Grayscale Investments. The agency set a December 29 deadline for final updates to filings for companies to be part of an initial wave of approvals expected in January.
The path for approvals was cleared after a federal appeals court ruled in August that the SEC prevented Grayscale from converting its bitcoin trust into an ETF. Since then, signs have pointed to the agency being open to greenlighting some of the 13 proposed spot bitcoin ETFs.
Attendees at Thursday’s SEC meetings, including crypto exchanges like Nasdaq and Cboe, said approvals could come in the first few business days of 2024. The regulators would privately inform issuers of the date their spot bitcoin ETF request has become “effective” and can launch.
Bitcoin ETF Filings Adjustments Amid SEC’s Guidance
Several firms have already altered filings at the SEC’s urging, including allowing cash redemptions. BlackRock and ARK Invest both made such changes this week. Final updates submitted by the December 29 deadline will likely feature additional technical details like fees and seed amounts to ensure adequate initial market liquidity.
While ARK Invest and 21 Shares are the only issuers to have publicized a proposed fee of 0.8%, other ETF issuers must now disclose their fees. Seed amounts provided by issuers when the ETFs launch are expected to be relatively small but to expand substantially once trading begins.
The Securities and Exchange Commission has spent years blocking spot bitcoin ETFs over manipulation worries in crypto markets. But following recent legal pressures and mounting interest, the agency seems ready to usher in a new era, with the first approvals coming in early 2024.
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