The United States Securities and Exchange Commission (SEC) organizing a joint conference call with issuers who have applied for a spot Bitcoin ETF has led many market observers to suggest that the US federal regulator is preparing to approve some issuers’ applications in the coming days. Currently, the closest deadline for the ETF applications in front of the SEC is January 10, 2024, and a decision is expected before this date.
Could the SEC Approve Pending ETFs Before 2024?
Information suggests that the US SEC has been directing ETF issuers to ensure that they will operate with a cash creation model, contrary to what current applications indicate. Out of the 14 companies that have applied for an ETF, 7 have already switched to the cash-only model.
Bitwise was the first company to switch to the cash-only model, while companies like Grayscale, VanEck, WisdomTree, and Franklin Templeton continue to operate with both in-kind and cash creation types. It is not yet clear whether these companies will move to a cash-only conversion.
Bloomberg analyst James Seyffart believes that some ETF issuers may fall behind by the deadline of January 10, 2024, while others may receive SEC approval. He also suggests a small possibility that Bitcoin ETF approvals could come within the year 2023, saying:
All this indicates that an ETF approval could come by January 10. It’s seen that some issuers may fall behind in preparation. Could this joint conference pull the ETF approval into 2023? Maybe. However, the base case is for an ETF approval to be issued on January 8-10, 2024.
Blackrock Expected to Be Among the First Approved Issuers
Previously, Fox Business senior correspondent Charles Gasparino had made a significant claim that the US SEC would grant approval to the ETFs in front of it by January 10, 2024.
Currently, some ETF issuers are in discussions with SEC officials regarding their applications. Recently, Blackrock and Grayscale each held about 4 to 5 meetings with the SEC. This has led to speculation that both Blackrock and Grayscale, contingent on Grayscale’s switch to a cash-only redemption model, could be among the first companies to receive ETF approval.
