The U.S. Securities and Exchange Commission (SEC) has increased its meetings with companies applying for spot Bitcoin ETFs as a potential approval looms. With over 30 meetings held, December became the busiest month in history for BTC ETF discussions, signaling that a decision is imminent.
According to FOX Business insiders, the SEC held multiple conferences with applicants on a Thursday afternoon, focusing on the specifics of the application process and the crucial message regarding the structuring of the ETFs.
The SEC has set a clear condition for the approval of spot Bitcoin ETFs: they must only allow trading with cash. This means investors cannot exchange BTC for dollars or vice versa. SEC staff emphasized that any mention of in-kind purchases or redemptions must be removed from applications, prompting companies to swiftly update their filings in preparation for January.
For the SEC, the cash-only structure is of paramount importance, and compliance with this condition is mandatory for those seeking approval.
In the next 10 days, ETF issuers are expected to update their S-1 filings for the next stage of AP approvals. This update will largely clarify the ETF approval timeline. Experts see the probability of an approval before January 8-10 as slim due to pending comment periods for an expected application.
There is concern within the SEC to approve all applications simultaneously to ensure equal opportunity, making January 8-10 the most reasonable period for a decision. CoinRoutes co-CEO David Weisberger commented that the SEC seems to be directing the change towards cash creation as the final hurdle before transition, with a likely outcome before the next deadline on January 10th. Meanwhile, Bitcoin’s price hovers around $43,634, with buyers finding it below $44,000 as the ETF decision approaches.
