Cryptocurrency enthusiasts are eagerly awaiting the potential approval of a spot Bitcoin exchange-traded fund (ETF) in the United States, and today marks a crucial deadline in this anticipation.
As of December 29, the U.S. Securities and Exchange Commission (SEC) requires spot Bitcoin ETF applicants to submit final S-1 amendments, sign agreements with authorized participants (AP), and finalize the cash-create redemption model preferred by the regulator.
This deadline positions the community to discover which spot Bitcoin ETF filers, out of the 14 applicants, may be part of the first wave of potential spot BTC ETF approvals, expected in early January.
Notably, many ETF applicants have updated their filings to incorporate the cash-create redemption model. By December 22, seven applicants had adjusted their filings to the cash-create model, while the remaining seven included both cash-create and in-kind models in their registration statements.
The SEC’s preference for the cash model stems from a desire to minimize the number of intermediaries with access to actual Bitcoin in the redemption and offering process. This move aims to create a more controlled system, with fewer intermediaries handling the physical Bitcoin, addressing concerns related to money laundering.
In addition to the cash-create preference, ETF applicants must have a designated AP by the December 29 deadline. While agreements are still being finalized, it is anticipated that major trading entities like Jane Street and Virtu Financial may play crucial roles as APs for the applicants.
As the countdown continues, the cryptocurrency community awaits the SEC’s decision on the much-anticipated spot Bitcoin ETF, which could significantly impact the market in the coming weeks.
