Eric Balchunas, a senior ETF analyst at Bloomberg, has signaled that the US Securities and Exchange Commission (SEC) is on the verge of officially approving Spot Bitcoin Exchange-Traded Funds (ETFs). According to Balchunas, the SEC is in the final stages of providing comments to issuers on their applications, with multiple applicants set to submit their final 19b-4s and S-1s following the feedback.
The race for approval is intensifying among major investment and asset managers, including industry giants such as Fidelity, BlackRock, and Grayscale. Although it remains uncertain which applicants will be the first to secure approval, the initiation of registrations of securities with the SEC by multiple applicants suggests that the long-anticipated approvals may be imminent.
Balchunas emphasized that while these developments are positive indicators, they do not confirm any official approval at this stage. Nevertheless, this aligns with a series of signals pointing towards the SEC potentially greenlighting the first Spot Bitcoin ETFs during the first quarter of 2024.
Just hours before Balchunas’s revelation, Anthony Scaramucci, investor and host of the Open Book podcast, cryptically posted “It’s done” on his social media account, sparking speculation among Bitcoin enthusiasts that he may be alluding to the SEC’s review of pending Spot Bitcoin ETF applications.
Ultimately, the fate of Spot Bitcoin ETFs in the US rests in the hands of the SEC board. Chairman Gary Gensler, who previously announced a fresh review of Bitcoin ETF applications, has emphasized the ongoing debate within the SEC regarding the purpose of Bitcoin ETFs and concerns about potential increased digital theft and crypto-related crimes.
Rumor mill ablaze
Social media platforms are buzzing with anticipation, fanned by an X post by Grayscale’s legal chief, who casually mentioned, “just filling out some forms.” This seemingly innocuous statement, coupled with a widely circulated tweet from a reporter, has led many to believe that the SEC could greenlight the Bitcoin ETF as early as Friday.
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While the expectation is high for a swift approval, some analysts caution that the potential regulatory nod might take a bit longer, possibly extending into next week. TechCrunch reporter Jacquelyn Melinek, who claims to have sources “extremely close to the matter,” took to X to share insights, stating she is “expecting something tomorrow” and hinting at the approval of multiple ETFs.
The social media sphere is abuzz with discussions centered around the potential approval, as reflected in the trending hashtags #BTCETF and “Bitcoin ETFs” on Twitter. Notably, the price of Bitcoin has experienced an upward trajectory since the sharp drawdown on January 3, rising by 3.4% in the last 24 hours, according to TradingView data.
The current state of the Bitcoin market is reflective of optimism reaching $43726 at press time. Analysts anticipate that upon the approval of the first Spot Bitcoin ETF application, the entire crypto market, led by Bitcoin, is likely to witness a substantial surge.
Observers are holding on to the hopes of having the ETF approved. X user MetaLawMan expressed confidence in the likelihood of approval, stating, “If the @SEC were to deny all spot $BTC ETFs, the applicants would immediately sue and the D.C. Court of Appeals would again rule that the SEC was ‘arbitrary & capricious.’ I expect multiple approvals on Jan. 10.”
Caitlin Cook, a former ETF sales professional, weighed in on the broader impact, cautioning that many are underestimating the long-term consequences of crypto ETF approvals.
As anticipation continues to build, insiders like X user @AP_Abacus have suggested that approval may be imminent, with sources indicating a potential announcement no later than Monday, adding to the mounting excitement within the crypto community.
Contrary to the bullish sentiments, a survey by Bitwise revealed that only 39% of financial advisors expect the approval of a Spot Bitcoin ETF in 2024, while Bloomberg ETF analysts estimate the likelihood of January approval at 90%.
However, 88% of advisors interested in purchasing Bitcoin are reportedly waiting until after the approval of a Spot Bitcoin ETF, highlighting the perceived significance of such an approval as a major catalyst.
A 2022 Nasdaq survey revealed that 72% of financial advisors would be more likely to invest in crypto if spot ETFs were approved in the U.S., highlighting the potential impact of regulatory decisions on market sentiment.
Information for this briefing was found via Watcher.Guru and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
