SEC Calls for Final Changes as Potential ETF Approval Looms

The SEC sets a deadline for final changes before its historic decision in January.

Gary Gensler doesn't know yet about Bitcoin.
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  • The SEC is taking one final look at the Bitcoin ETF proposals. 
  • The financial watchdog has set a deadline for final changes. 
  • Reports indicate increasing signs of a potential ETF approval in early January. 

With just a few days remaining until January, excitement for the Bitcoin exchange-traded funds (ETF) has reached unprecedented levels. The US Securities and Exchange Commission (SEC) is taking its rounds with the applicants, ensuring that the Is are dotted and the Ts are crossed before it potentially approves one of the most revolutionary financial instruments, changing the financial world forever.

The SEC Sets Deadline for Final Changes

According to reports, the SEC is finally warming up to Bitcoin Spot ETF proposals and is expected to make a historic decision by January 10, 2024. This date marks the final decision point for the SEC to either approve or deny the application for the first Spot Bitcoin ETF. 

In preparation for the January decision, officials from the US SEC met with representatives of at least seven applicant companies, including BlackRock, Grayscale Investments, and 21 Shares, hoping to launch Bitcoin spot ETFs. According to close sources, the financial watchdog instructed at least two firms to submit final changes by the end of this business week on December 29. 

As per reports, the SEC has told applicants that issuers failing to meet the deadline for final changes will not be part of the first wave of potential spot Bitcoin ETF approvals in early January.

While there are increasing signs of a potential spot ETF approval in early January, it’s important to note that the SEC retains the authority to reject proposals outright on the deadline. So far, the regulatory body has been delaying its decision, keeping the market in suspense regarding whether it will reject or approve the proposal.

On the Flipside

  • One critical aspect of the SEC’s potential approval of the ETF is its stern request that investments in these assets be made using cash only
  • The SEC’s cautious approach to crypto spot EFTs means that the regulator does not see crypto assets as equal to traditional ones. 

Why This Matters

The SEC’s upcoming decision to approve the first spot Bitcoin ETF could redefine the dynamics between traditional finance and the burgeoning digital asset sector, allowing the latter to break into the mainstream.

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Author
Insha Zia

Insha Zia is a senior journalist at DailyCoin covering crypto developments, especially in the Cardano ecosystem. With a Bachelor of Science in Computer Systems Engineering, he delivers high-quality articles with his technical background and expertise in data analysis and programming languages, aiming to educate and inform readers accurately, transparently, and engagingly. Insha believes education can drive mass adoption of the crypto space, and he is committed to giving DailyCoin readers a better understanding of the technology.