Important Bitcoin ETF Trends to Monitor This Week

The Anticipation for a Bitcoin ETF Approval

The crypto community is eagerly awaiting a potential approval of a spot Bitcoin ETF by the United States Securities and Exchange Commission (SEC). As the decision date approaches, many are hopeful for a positive outcome.

Predictions by Bloomberg Analysts

Eric Balchunas and James Seyffart, senior ETF analysts at Bloomberg, have been actively discussing the SEC’s decision on Bitcoin ETF applications. They have predicted a 90% chance of approval for the new product.

Window for Approval or Rejection

Seyffart recently revealed that the SEC has a specific timeframe in which it will either approve or reject multiple Bitcoin spot ETFs. This window is between January 5 and 10, 2024, meaning that the decision could come within that week.

Expectations for S-1 Filing Amendments

Balchunas has urged the public to look out for updated S-1 filing amendments this week. However, there will be no updated 19b-4s as the SEC has requested all potential Bitcoin ETF issuers to submit them offline. Some firms, like Hashdex, have already made amendments to their filings.

Potential Redemption Models

The choice of redemption model is also a topic of discussion. The SEC’s Trading and Markets division met with applicants for the spot Bitcoin ETF offering to discuss this. BlackRock, for example, prefers an “in-kind” redemption model over a cash create model. However, rumors suggest that only cash creates will be allowed in the first grouping, potentially impacting BlackRock’s chances.

Uncertainty for Grayscale’s GBTC Conversion

There is uncertainty surrounding whether Grayscale will be allowed to convert its GBTC to an ETF in the first grouping, despite updating its application. The crypto community is eagerly awaiting the SEC’s decision on these matters.

Hot Take: The Crypto Community Awaits a Potential Bitcoin ETF Approval

The anticipation for a potential spot Bitcoin ETF approval from the SEC is growing within the crypto community. Analysts predict a high chance of approval, and there is a specific window for the decision between January 5 and 10, 2024. Firms are making amendments to their filings, and there are discussions about the redemption models for the ETFs. The outcome of these decisions will have a significant impact on the future of Bitcoin investments.