The Potential Approval of ArkInvest’s Spot Bitcoin ETF Application
The SEC deadline for potential approval of ArkInvest’s spot Bitcoin ETF application is next week, coinciding with multiple potential approvals to multiple issuers from 5 January to 10 January 2024. As speculations are going crazy, a recent confidential report from Reuters has added fuel to the excitement.
A Confidential Report from Reuters
A report has suggested that the SEC may inform firms before the judgment day. Nate Geraci took to social media platform X to inform a source-based report from Reuters, affirming that the “SEC *may* notify issuers as soon as Tuesday or Wednesday that they have been cleared to launch spot bitcoin ETFs the following week.”
Eligible for Launch Approval
Per the latest SEC report, issuers who have successfully submitted their revised S-1 Amendment form by the 29th of December might be eligible for launch approval by January 10 ‘24. The SEC must either approve or reject the ETF by the anticipated date.
Possible Clearing for Launch
Additionally, sources mentioned that issuers could be notified by Tuesday or Wednesday if they have been cleared to launch the following week. It is important to note that this information appears to be time-sensitive, and the situation may have evolved since then.
Confirmation of News
James Seyffart from Bloomberg has reiterated the news, confirming his staunch beliefs that this might be true. In his tweet, he says he would’ve believed the news to be a “tad early” had they been reported a couple of weeks ago. However, it feels for him that “it’s looking like we’re in the home stretch.”
What to Look Forward to
Fourteen asset management firms await the SEC’s approval for the spot bitcoin ETF application. Nonetheless, this endeavor has faced rejection over the past decade due to market manipulation and investor protection concerns. The SEC has previously approved only cryptocurrency ETFs tied to futures contracts on Bitcoin and Ethereum, which are securities or contracts by nature.
Grayscale Investments and Hashdex are among those aiming to convert existing products into spot bitcoin ETFs, having successfully submitted their updated amendments within the 29th Dec deadline. The SEC has not given any official update and refused to comment to reporters. The regulatory landscape for cryptocurrency ETFs remains a focal point, with ongoing efforts and submissions from various issuers.
Hot Take: The Future of Bitcoin ETFs
The possibility of multiple approvals for spot Bitcoin ETFs and the potential for major firms to launch these ETFs signals a significant shift in the regulatory landscape for cryptocurrency. If approved, these ETFs could offer investors a new way to gain exposure to Bitcoin, but it also raises concerns about market manipulation and investor protection. As the SEC deadline approaches, all eyes will be on the potential impact of these approvals on the cryptocurrency market.
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