SEC holding ‘rare joint conference call’ with spot Bitcoin ETF applicants: Reports

The U.S. Securities and Exchange Commission (SEC) is rumored to be speaking with multiple spot Bitcoin ETF applicants at once according to a Dec. 21 report.

FOX Business correspondent Charles Gasparino wrote on X:

“SCOOP: [The SEC] is having what’s described as a rare joint conference call with prospective “spot” [Bitcoin] ETF filers, as its closely watched decision looms on whether to give these [companies] the green light to sell to small investors access to crypto.”

Eleanor Terret, also a FOX correspondent, said that the call involved ensuring that applicants are committed to a cash creation model. Terret added that the SEC told applicants to “remove all hints of in-kind redemptions from their filings.”

An in-kind model would allow for certain Bitcoin transactions among ETF industry participants. Recent updates to BlackRock’s filing have already replaced mentions of in-kind with cash but leave room for an in-kind model pending approval.

None of the involved parties have publicly confirmed the above call. Previously, the SEC has confirmed individual meetings, albeit not always immediately.

Jan. 10 emerges key date

The rumored conference call may indicate that the SEC may soon decide on spot Bitcoin ETF applications. Many experts suggest this will occur by Jan. 10, 2024.

FOX Business itself has supported expectations of an ETF approval in the new year. In an article on Dec. 20, Gasparino and Terret wrote that sources close to various firms believe that an ETF will be approved by Jan. 10. Until now, the January deadline has largely been mentioned by members of unrelated companies and news sources rather than company insiders.

Most sources expect approval by Jan. 10 based on public knowledge of a deadline by which the SEC must decide on an application from Ark Invest. Meetings between the regulator and numerous applicants, plus updates to filings, are also producing optimism — especially due to the SEC’s engagement with BlackRock, the most significant of the current ETF applicants.

Separately, a legal ruling obtained by Grayscale requires the SEC to review (but not approve) its application. This has similarly produced optimism.

Despite widespread expectations around approvals, the SEC could reject any application in January. It has not approved any spot Bitcoin ETF to date.