Regulators may give the green light to 12 Bitcoin ETF applications this week.
The quest for approval of Bitcoin exchange-traded funds (ETFs) in the United States has reached a critical moment. The Securities and Exchange Commission (SEC) has a limited timeframe to potentially give the green light to a dozen pending ETF applications. Starting on November 9 and spanning the following eight days, the SEC has a unique opportunity to reshape the landscape of cryptocurrency investments by granting approval to these spot Bitcoin ETFs.
ETFs, which enable investors to gain exposure to Bitcoin without owning the digital asset directly, have been a subject of intense debate in the financial world. If the SEC were to grant its approval, it would open the door for investors to purchase shares backed by Bitcoin, presenting an appealing and accessible investment option for those who may have been hesitant to directly invest in the volatile cryptocurrency.
12 Bitcoin ETF Filings Might Be Approved This Week
Bloomberg ETF analysts James Seyffart and Eric Balchunas have underlined the crucial nature of this moment. They have stressed the significance of the time frame at hand. Seyffart and Balchunas have suggested that the SEC’s decision to issue delay orders for prominent players such as BlackRock, Bitwise, VanEck, WisdomTree, Invesco, Fidelity, and Valkyrie indicates a coordinated effort. This implies that the SEC might be inclined to permit all 12 applicants to introduce Bitcoin ETFs, signifying a notable shift in their approach. It’s essential to note that while the possibility exists, approval is not guaranteed during this window.
New Research note from me today. We still believe 90% chance by Jan 10 for spot #Bitcoin ETF approvals. But if it comes earlier we are entering a window where a wave of approval orders for all the current applicants *COULD* occur pic.twitter.com/u6dBva1ytD
— James Seyffart (@JSeyff) November 8, 2023
Delay orders were issued by the SEC for BlackRock, Bitwise, VanEck, WisdomTree, Invesco, Fidelity & Valkyrie at the same time. If the agency wants to allow all 12 filers to launch — as we believe — this is the first available window since Grayscale’s court victory was affirmed pic.twitter.com/v5GkbP5IUj
— James Seyffart (@JSeyff) November 8, 2023
The reason this particular time frame is significant is connected to the SEC’s decision to extend the deadline for multiple applications. The period for public comments came to an end on November 8, marking the final day for any conclusive determinations. Subsequently, starting on November 17, the comment period for three specific applications will be reopened. This will result in a further delay in their possible approval or rejection until after November 23.
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Bitcoin touches $36,000
While the SEC deliberates on its decisions, the cryptocurrency market remains highly volatile. Bitcoin briefly reached $36,000 before undergoing a correction. Nonetheless, Bitcoin has demonstrated impressive gains, with the digital asset experiencing a 32% increase in the past month and a remarkable 99% surge over the last year. Currently, at the time of this writing, BTC is trading at $36,639.46, reflecting a 3.9% daily increase.
Nevertheless, it’s crucial to emphasize that the possible endorsement of a Bitcoin ETF has not yet been fully factored into the market. According to Matt Hougan, the Chief Investment Officer at Bitwise Asset Management, many prospective investors remain unaware of the imminent approval potential. Financial advisors, a natural target audience for ETFs, largely anticipate that approval might not happen until 2025 or later. Consequently, if approval does materialize, it could potentially lead to a surge in both interest and investment in Bitcoin. Additionally, this could have an impact on the cryptocurrency’s price and the dynamics of the market.
To sum it up, the upcoming days will play a pivotal role in determining the destiny of Bitcoin ETFs in the United States. The market is anxiously anticipating the SEC’s verdict. Should it gain approval, it could signify a transformative moment for cryptocurrency investments, potentially ushering in a new wave of enthusiasm and adoption.
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