The journey toward SEC approval of a spot BTC ETF is witnessing two notable developments, potentially contributing to the rise in crypto prices. The first significant development involves a series of meetings between Bitcoin ETF proposers and representatives from the SEC and the NASDAQ stock exchange. Key proposers, including BlackRock, Valkyrie, Fidelity, and 21Shares, engaged in discussions on how approved ETF listings would comply with Nasdaq Rule 5711(d) and the SEC’s stringent rules for compliance and oversight of Bitcoin spot ETFs.

One crucial change requested by the SEC involves the removal of “in-kind” redemptions for ETFs, meaning fiat currency is required to buy shares, but the funds themselves hold Bitcoin. BlackRock and others have agreed to this stipulation, aligning with the SEC’s preference for cash-only transactions to minimize risks associated with unregistered brokers and handlers.

The second development involves reports from sources close to the firms, indicating that the SEC will deliver its decision on ETFs by January 10, 2024. While the cash-only requirement presents a setback, an approved ETF could attract new capital into the crypto space, allowing retail investors to enter the market without the complexities of managing wallets or exchanges.

As the deadline for approvals or denials approaches, January 10 will be a crucial day for the crypto industry, potentially welcoming a new wave of investors through spot Bitcoin ETFs.