Bloomberg Analysts Increase Chances of Spot Bitcoin ETF Approval to 90%
Bloomberg analysts Eric Balchunas and James Seyffart have raised the likelihood of the U.S. Securities and Exchange Commission (SEC) approving a spot Bitcoin exchange-traded fund (ETF) to 90%. This follows updates made by Ark Invest and 21Shares to their spot Bitcoin ETF prospectus at the request of the SEC. The analysts anticipate that the SEC will approve a spot Bitcoin ETF by January 10, as indicated by recent updates to the applications. The constructive conversation between Ark Invest and the SEC suggests that the regulatory body is working towards approving the proposal. Other applicants are also expected to update their documents soon.
SEC Chooses Not to Appeal Grayscale Ruling
The SEC has decided not to appeal against a court ruling allowing Grayscale to convert its GBTC product into a spot Bitcoin ETF. Analysts believe that if the deadline for the Grayscale lawsuit to convert GBTC to spot Bitcoin occurs this year, it may expedite the approval of a spot Bitcoin ETF by the SEC. The courts and other issuers are putting pressure on the SEC Division of Trading & Markets to approve a spot Bitcoin ETF. Additionally, Grayscale has submitted an application for an Ether ETF, with higher odds of approval. ProShares is also launching a short Ethereum futures ETF next week.
Hot Take: Positive Outlook for Spot Bitcoin ETF Approval
The recent updates made by Ark Invest, 21Shares, and Invesco Galaxy, along with the SEC’s decision not to appeal against the Grayscale ruling, indicate a positive outlook for the approval of a spot Bitcoin ETF. Bloomberg analysts have increased the chances of approval to 90%, anticipating that it could happen by January 10. The ongoing dialogue between fund sponsors and the SEC suggests that the regulatory body is actively working towards approving the proposal. The pressure from the courts and other issuers further supports the expectation of a spot Bitcoin ETF approval in the near future.
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