As the long-anticipated decision date looms, aspirants vying for a Bitcoin ETF eagerly await the SEC’s potential green light, with Monday marking the deadline for final application adjustments in Washington, according to Bloomberg News. The SEC holds until Jan. 10 to act on these applications, a moment crypto insiders believe might herald multiple announcements from the regulatory body.
For a Bitcoin ETF pegged to actual assets to commence trading, two prerequisites must be met. Firstly, the SEC must approve the exchanges’ 19b-4 filings, facilitating the ETF listing. Secondly, the regulator must greenlight the pertinent S-1 forms, the registration applications from prospective issuers, which notably include industry giants like BlackRock and Fidelity.
Per reports by Bloomberg News, the SEC is poised to review the exchanges’ filings, the 19b-4s, in the imminent days. Subsequently, the regulator may or may not take action on the issuers’ applications, the S-1s, around a similar timeline. Should the SEC grant both sets of approvals, the ETFs could commence trading as soon as the following business day.
An SEC representative refrained from commenting on the application statuses.
ETF Potential
Supporters of Bitcoin highlight that ETFs backed by the leading cryptocurrency could mark a pivotal juncture for digital assets, potentially attracting billions of dollars from both retail and institutional investors.
“The market is still seriously underestimating the potential impact of a Bitcoin ETF approval,” remarked Michael Anderson, co-founder of crypto venture firm Framework Ventures.
Nonetheless, under the leadership of Gary Gensler, a Democrat, and his predecessor Jay Clayton from the Trump era, the SEC has previously rebuffed such products, citing concerns about investor safeguarding and market manipulation potential.
Yet, mounting speculation arose following the SEC’s legal loss against crypto asset manager Grayscale Investments in August, suggesting that the regulator might concede to the escalating demand for the product.
Market sentiment, fueled by the belief in impending regulatory approval, led Bitcoin to surge roughly 160% last year. Despite this, the cryptocurrency has yet to surpass the record highs witnessed in November 2021, when it nearly touched $69,000.
Currently hovering around $44,000 since the onset of 2024, the token experienced a slight dip to $43,640 as of 6:02 a.m on Monday in London, reflecting a broader downturn in crypto markets at the start of the workweek.
