SEC Holds Joint Conference with Spot Bitcoin ETF Hopefuls Amid Approaching Deadline: Report

The U.S. Securities and Exchange Commission (SEC) is reported to conduct a "rare joint conference" with applicants vying for approval of the first spot bitcoin exchange-traded fund (ETF), according to FOX Business correspondent Charles Gasparino. This significant development is seen as a key step toward potential approvals anticipated by January 10, 2024.

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SEC's Push for Cash Creation Model

As per U Today, insider sources linked to FOX Business reveal that the SEC will likely greenlight the first spot bitcoin ETF by January 10, 2024. During the joint conference call, the SEC reportedly emphasized the importance of a cash-creation model among the applicants.

Correspondent Eleanor Terret of FOX disclosed that the SEC instructed the applicants to remove any references to in-kind redemptions from their filings. Terret further highlighted that the SEC sought assurance from applicants regarding their commitment to a cash-creation model.

This approach indicates a shift from an in-kind model, allowing certain Bitcoin transactions among ETF industry participants. This strategic move aims to ensure a clear commitment to a cash-centric approach.

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No Public Confirmation, but Growing Optimism

While none of the involved parties have publicly confirmed the joint conference call, sources close to various firms express optimism about the potential ETF approval by January 10.

FOX Business, in a December 20 article, reported that insiders believe an ETF approval is likely by the specified date. The reported active engagement of the SEC with multiple applicants, including industry giant BlackRock, contributes to the growing optimism surrounding a potential approval.

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Legal Ruling Impacting Grayscale Adds to Optimism

In a parallel development, a legal ruling affecting Grayscale requires the SEC to conduct a review, though not necessarily an approval, of its ETF application. This ruling has injected additional optimism into the market, suggesting a potential shift in the SEC's approach to Bitcoin ETFs.

Despite these positive indicators, it's crucial to note that the SEC has not yet approved any spot Bitcoin ETF. While expectations are widespread, the regulatory body retains the authority to reject applications, and January's decisions could bring unexpected outcomes.

The January 10 deadline, especially linked to an application from Ark Invest, adds an element of anticipation to the market, and the ongoing engagements with various applicants continue to shape the evolving landscape of Bitcoin ETF approval.