- Candidates expect to receive approval of their applications by Tuesday or Wednesday
- Asset managers were asked to reveal the identities of their market makers
- SEC asked first-in-line candidates to submit written requests to speed up approval
Stock exchanges, asset management firms, and the US Securities and Exchange Commission (SEC) discussed last-minute changes of applications for spot bitcoin ETFs in a step that should facilitate approval of the same as soon as next week for the first time in history, insiders told Reuters.
SEC officials and stakeholders held discussions of the S-1 prospectus documents that each ETF has to submit for approval, representatives of five applicants added. They expect to receive final approval of their applications by Tuesday or Wednesday next week.
The changes
The SEC only asked for minor changes according to the three issuers. Some of the companies, which are asset managers, were asked to reveal the identities of their market makers or disclose their fees. The changes have to be made by 8 AM ET (1300 GMT) on Monday. The SEC did not comment on individual filings.
Watchdogs have also been working with exchanges to complete 19b-4 filings, which reveal the rule changes the SEC has to approve in order for the ETFs to become fact. Changes to 11 filings were announced on Friday.
Bitcoin ETFs could launch on Jan. 10
Insiders to the process told Reuters that candidates who met end-of-year deadlines to make changes could receive approval to launch by Jan. 10. The first candidate to file an application was Ark Invest, who filed jointly with 21Shares. The SEC must decide for or against their application by Jan. 10.
Do concerns over manipulation remain?
Multiple firms have applied to found spot bitcoin ETFs in the past decade, but the SEC has always rejected their applications with the argument that such products are vulnerable to market manipulation. At the moment, fourteen companies are waiting for a decision by the regulator.
An “unusual” move
In a move described by some insiders as unusual, the SEC has asked first-in-line candidates to submit written requests so it can speed up their effective date. Typically, regulators and candidates discuss the timing unofficially.
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