SEC's ETF Deadline Signals 2024 Crypto Shift


The U.S. Securities and Exchange Commission (SEC) has set a year-end deadline to review several spot Bitcoin-linked Exchange-Traded Funds (ETF) proposals.

The U.S. Securities and Exchange Commission (SEC) has set a year-end deadline for final changes to applications for several proposed exchange-traded funds (ETFs) tied to spot bitcoin. The SEC, in a key meeting with major financial firms like BlackRock, Grayscale Investments, ARK Investments, and 21 Shares, indicated a potential green light for these ETFs in early 2024. This move marks a significant shift in the SEC's approach, influenced by a recent federal appeals court decision favoring Grayscale's ETF proposal.

Key points include the SEC's intensified interaction with issuers ahead of a January 10 decision on a joint proposal by ARK-21 Shares, with technical tweaks and fee disclosures being the focus. The SEC has set December 29 as the deadline for final updates, essential for early approvals. The meeting also involved representatives from Nasdaq and Cboe, where the ETFs might be listed.

Looking ahead, issuers' compliance with SEC demands by year-end is crucial for early launches. Regulatory approval could be a watershed moment for Bitcoin and the broader cryptocurrency ecosystem, as investors brace for increased volatility and potential price swings in the Bitcoin market.

The SEC's openness to spot bitcoin ETFs represents a turning point for the cryptocurrency market, which has long sought mainstream financial products linked directly to bitcoin. The decisions, expected in early 2024, are eagerly awaited by the cryptocurrency community and financial markets.

Issuers are making technical adjustments to their filings, including provisions for cash redemptions as required by the SEC. Details on fees and initial seeding capital for the ETFs are also anticipated in the final updates, with ARK and 21 Shares proposing a 0.80% fee for their joint ETF. The initial seeding amounts are expected to be modest but will likely grow as trading begins, providing necessary liquidity for market makers​

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Exchange-Traded Funds (ETFs)

ETF stands for "Exchange-Traded Fund." It is an investment fund that is listed and traded on a stock exchange, similar to stocks. ETFs typically track a specific index, industry, commodity, or other assets, but like ordinary stocks, they can be bought and sold at market prices throughout the trading day.


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