The U.S. Securities and Exchange Commission (SEC) has scheduled a joint conference call with issuers who have applied for a spot Bitcoin ETF, stirring speculation among market observers that the U.S. federal regulator may be preparing to approve some applications in the coming days. The nearest deadline for the ETF applications currently before the SEC is January 10, 2024, with a decision expected before this date.
Information suggests that the SEC is directing ETF issuers to operate on a cash creation model, contrary to what current applications indicate. Out of 14 companies that have filed for an ETF, 7 have already switched exclusively to the cash model.
Bitwise was the first company to switch solely to the cash model, while companies like Grayscale, VanEck, WisdomTree, and Franklin Templeton continue to operate both in-kind and cash creation models. It is still unclear whether these companies will transition exclusively to cash conversion.
Bloomberg analyst James Seyffart believes some ETF issuers may fall behind by the January 10, 2024 deadline, while others may receive SEC approval. He suggests a small possibility that Bitcoin ETF approvals could come within 2023, stating that the joint conference could potentially pull the ETF approval into 2023, but the base case remains for approval around January 8-10, 2024.
Previously, Fox Business senior correspondent Charles Gasparino had claimed that the SEC would grant approval to the ETFs before the January 10, 2024 deadline. Currently, some ETF issuers are in discussions with SEC officials regarding their applications.
Recently, Blackrock and Grayscale held about 4 to 5 meetings each with the SEC. This has led to speculation that both Blackrock and Grayscale, contingent on Grayscale’s switch to a cash redemption model, could be among the first companies to receive ETF approval.