Bitcoin ETF Watch: SEC Reportedly Meets With Big Players, Demands Final Touches By This Deadline - BlackRock (NYSE:BLK)

Officials from the Securities and Exchange Commission reportedly engaged in meetings on Thursday with delegates from seven firms, all vying to introduce Bitcoin BTC/USD exchange-traded funds (ETFs).

What Happened: The SEC convened a meeting on Thursday with representatives from firms such as BlackRock Inc BLK and Grayscale Investments GBTC to discuss their proposed Bitcoin ETFs, Reuters reported, citing public memos and two people familiar with the discussions.

The SEC has established Dec. 29 as the deadline for final amendments. Issuers failing to meet this deadline will not be considered for inclusion in the initial wave of potential spot bitcoin ETF approvals in early January, sources cited by Reuters reported.

The SEC is expected to render a decision on a joint proposal from ARK Investments and 21 Shares by Jan. 10, as per the report.

Why It Matters: Executives from the participating companies suggested that the SEC might grant approvals as early as the first few business days of 2024.

The SEC has previously rejected numerous applications to launch spot Bitcoin ETFs, citing concerns about susceptibility to market manipulation.

Amendments to the ETF proposals encompass technical details, including the allowance for cash redemptions, a request put forth by regulators. Any final changes are likely to outline fees and the amounts issuers intend to use to “seed” the new ETFs.

However, QCP Capital, a firm specializing in trading digital assets, anticipates Bitcoin ETF news around Jan. 5, 2024, or potentially within the Jan. 8 to Jan. 10 timeframe.

Price Action: At the time of writing, BTC was trading at $43,130, down 0.25% in the last 24 hours, according to Benzinga Pro.

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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