Confirmed the crucial expiration date for Bitcoin Spot ETFs.

The deadline for making changes to the Bitcoin Spot ETFs has been officially confirmed. 

Specifically, FOX Business has stated that the final date for changes to all Bitcoin ETFs is set for December 29th. The SEC has informed issuers that complete requests submitted by Friday will be evaluated in the first phase of the process. 

Let’s see below all the details. 

December 29th: the deadline for changes to Bitcoin Spot ETFs 

As anticipated, fund managers aiming to launch a spot Bitcoin ETF in the United States have less than a week to complete their applications, according to the latest deadline set. 

According to the confirmation from Fox Business journalist Eleanor Terrett, candidates have until December 29th to finalize their applications.

We remind you that BlackRock, VanEck, Ark Investments, Fidelity, and Grayscale are just some of the fund managers who have filed with the SEC the possibility of launching a spot ETF on Bitcoin.

Therefore, it is essential to complete the questions by the above-mentioned date in order to be included in the first wave of spot Bitcoin ETFs. These are expected to be approved by the United States Securities and Exchange Commission (SEC).

In addition, it has been learned that broadcasters have been clearly instructed to exclude any reference to natural creation in their questions, otherwise they risk being excluded. 

Bullish prospects for Bitcoin: the final decision on ETF

As known, negotiations regarding the creation of liquidity and in-kind have been a fundamental element in the discussions between aspiring ETF issuers and the regulatory body.

Initially, many fund managers had chosen creation and redemption in kind, allowing the fund to transact BTC directly with investors. 

However, the SEC has encouraged applicants to lean towards creation and cash redemption, thus eliminating significant risks to security associated with cryptocurrency transfers.

This approach has been adopted by several ETF issuing companies in the hope of obtaining SEC approval. 

The conclusion of the approval process by the end of this week will mark the end of months of negotiations between the SEC and aspiring issuers.

Meanwhile, January 10th represents the first approval window for spot Bitcoin ETF requests, with the options market reflecting the anticipation for this groundbreaking decision.

The potential approval of a Bitcoin ETF has been one of the main drivers of BTC price throughout the year.

As a result, with the application process now in its final stages and a decision imminent in the coming weeks, the price of Bitcoin maintains a bullish trend. 

Currently, BTC is trading at around $43,000, recording a 15% increase in the last month. 

Despite experiencing a slight retracement over the weekend, the cryptocurrency has gained 5% in the last seven days, maintaining a bullish expectation in anticipation of what many consider a turning point for the asset.

Analysis of Bitcoin ETFs: sizes, trends, and market implications

A recent report by Coin Gecko has examined the current largest Bitcoin ETFs in the world.

At the top of this list is the Bitcoin Tracker One (COINXBT) by XBT Provider, with a total of assets amounting to 7.11 billion dollars. 

In second and third place among the largest Bitcoin ETFs, we find the ProShares Bitcoin Strategy ETF (BITO) and the Purpose Bitcoin ETF (BTCC). 

BITO, incorporated in the United States, has a total asset of 1.64 billion dollars, while BTCC, incorporated in Canada, is the leading spot Bitcoin ETF with 1.55 billion dollars in assets.

However, the landscape of Bitcoin ETFs shows a prevalence of ETFs on futures, which represent 61.6% of the total assets among the top 20 ETFs. 

This suggests that, perhaps, traditional finance prefers derivatives for exposure to Bitcoin rather than the cryptocurrency itself.

In total, the top 20 Bitcoin ETFs have assets ranging from $54.86 million to $7.11 billion. However, the total amount of these 20 ETFs, amounting to $16.00 billion, is surpassed by the $27.14 billion of the Grayscale Bitcoin Trust.

Currently, ETFs hold about 793,034 BTC, representing 3.8% of the maximum supply of 21 million Bitcoin. 

It remains to be seen whether the approval of spot Bitcoin ETFs in the United States will increase investor demand and if traditional financial institutions will significantly influence Bitcoin.

GBTC, awaiting SEC approval for conversion from a closed-end fund to an ETF, has the highest number of Bitcoin holdings with 622,657 BTC, over three times the combined number of other ETFs worldwide.

The distribution of Bitcoin held by spot ETFs varies widely, from 2 BTC in Valour Bitcoin Carbon Neutral (1VBT) to 35,523 BTC in Purpose Bitcoin ETF (BTCC).