The United States Securities and Exchange Commission (SEC) has set a deadline for final changes to the spot Bitcoin ETF applications. Industry watchers are hopeful for a spot Bitcoin ETF approval in early January.
SEC Sets Deadline For Final Changes
The SEC has informed firms that they must make any changes to their respective ETF proposals by December 29, 2023. Grayscale, BlackRock, and Ark Invest are among the hopeful firms seeking approval in 2024.
The SEC is expected to make a decision on January 10, 2024, regarding the first-ever spot Bitcoin ETF applications. The commission has held multiple meetings with various firms leading up to the decision, with the latest meeting held on December 22. Some firms were urged to file changes by the December 29 deadline.
“According to Reuters, the U.S. SEC has set a deadline of the 29th of December for filing applications for a Bitcoin spot ETF. SEC officials met with representatives from at least seven companies hoping to launch a Bitcoin spot ETF, including representatives from BlackRock, Grayscale, ARK Investments, and 21 Shares.”
Firms that fail to meet the final changes deadline will not be considered in the first wave of potential approvals for a spot Bitcoin ETF.
Could We See An Approval In January?
The SEC has insisted on cash creation and redemption models for the spot Bitcoin ETF, with BlackRock and Ark Invest/21 Shares having already made the necessary changes. Other final changes may pertain to fees and seeds.
Although signs suggest the SEC may approve a spot Bitcoin ETF in January, it still holds the authority to reject the proposals. The SEC has previously delayed its decision multiple times, leaving the market in anticipation.
If the first spot Bitcoin ETF is approved, there could be a significant rally in Bitcoin’s price, which is currently just under $42,500.
Hot Take: Significance of the Potential Approval
The potential approval of a spot Bitcoin ETF by the SEC in January holds great significance for the cryptocurrency market. It would open the doors for institutional investors to easily invest in Bitcoin through regulated channels, potentially leading to a surge in demand and price. Additionally, it would contribute to the mainstream adoption and acceptance of Bitcoin as a legitimate asset class. The crypto community eagerly awaits the decision and the subsequent impact it could have on the market.
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