Bitcoin Spot ETF: SEC sets final deadline for applicants - approval expected by January

Bitcoin Spot ETF: SEC sets final deadline for applicants - approval expected by January

According to a report by www.btc-echo.de,

Preparations for a Bitcoin Spot ETF are in their final stages. The US Securities and Exchange Commission (SEC) informed applicants of a final deadline by which changes can be submitted to the authority. This is reported by Reuters, citing sources close to the authority.

People familiar with the matter tell the news agency of an intensive exchange between the SEC and representatives from BlackRock, ARK Investments, 21 Shares and Grayscale. The stock exchange supervisory authority informed the applicants that changes can be made until December 29th, i.e. next Friday. If the deadline is missed, the candidates would not be considered for the first wave of approvals, the sources said. Market observers and experts expect the green light on January 10th next year. Then the first tranche of Bitcoin Spot ETFs will make its stock market debut.

SEC requires additional cash reserves

In the past few weeks there have been repeated changes in the applications from BlackRock and Co. One focus was on the type of issue of the ETF shares. The SEC clearly spoke out in favor of a cash variant. After lengthy discussions, the applicants finally gave in. Shares should now be issued as follows:

When creating new ETF shares, the parties involved (so-called “Authorized Participants”) must now hold cash reserves in the same amount as the purchase price in addition to the Bitcoin purchased. These should then be transferred to the issuer. In return, the issuer then transfers the shares to the parties involved.

The additional cash reserve makes the issue more expensive for the providers. But one thing is now clear: nothing changes in the fact that providers have to hold Bitcoin.

Grayscale CEO sacrifices himself for Bitcoin ETF

One applicant who resisted this variant for a long time was Grayscale. However, the company, which belongs to the troubled Digital Currency Group (DCG), ultimately bowed to the regulatory will. Its latest version states, among other things: “The creation and withdrawal of the shopping cart takes place via cash orders that the authorized party deposits or accepts into the cash account.”

But the largest asset manager for digital assets is also restructuring its personnel. Barry Silbert, the CEO of DCG, is stepping down as chairman of Grayscale effective January 1. This emerges from an SEC document. DCG CFO Mark Shifke will take his place.

The reasons for the abdication remain unknown. According to rumors, the withdrawal is part of a deal with the US Securities and Exchange Commission to expedite approval for the conversion of its own Bitcoin trust into an ETF. Grayscale wants to be part of the group that should get the green light first.

Barry Silbert has been in the headlines in recent months, particularly due to legal disputes with Gemini. The background was outstanding liabilities from the crypto lender Genesis, a subsidiary of DCG, to the Winklevoss twins' crypto exchange. Genesis has now filed for bankruptcy.