In the context of the US Securities and Exchange Commission (SEC) holding a joint conference call with ETF filers, analysts are wondering if the agency is in preparation for approving the filings for some issuers in the days to come. The Commission faces the next deadline around January 10, 2024, before which it is widely expected to take a decision.
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SEC Favoring Cash Only Model
The US SEC had reportedly directed the ETF seekers to ensure they would operate on cash creates redemption model as against what the existing filings show. Of the 14 ETF filers, seven companies have already converted to the cash only model. Bitwise was the first to convert to cash only model, while the likes of Grayscale, VanEck, WisdomTree and Franklin Templeton remain with both in-kind and cash creation type currently. It remains to be seen if these companies would go for cash only conversion.
Bloomberg analyst James Seyffart feels some issuers may be left behind by the January 10, 2024 deadline whereas others would get the nod of SEC’s approval. However, he expressed slight probability that the Bitcoin ETF approvals may come witin the year 2023.
“If anything this *may* bring approvals into 2023? But base case I am expecting approvals (between) January 8-10.”
Earlier, CoinGape reported that Blackrock amended its form S-1 confirming the adoption of cash redemption model. However, it left the in-kind model unconfirmed stating it is subject to regulatory approval.
Blackrock To Be Among The First To Get Approval?
Earlier, Fox Business senior correspondent Charles Gasparino shared an update that the SEC is on path to give ETF approvals by January 10, 2024. Meanwhile, some of the ETF seekers have been queuing up to the SEC officials to discuss on their filings. In the recent past, Blackrock and Grayscale held roughly 4 to 5 meetings each with the Commission. Does this mean both Blackrock and Grayscale would be among the first to get ETF approval, subject to Grayscale’s conversion to cash only redemption model?
Also Read: US SEC Reportedly Held Calls with Spot Bitcoin ETF Filers
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