U.S. SEC Expected to Approve Spot BTC ETFs in January 2024
Analysts predict that the U.S. Securities and Exchange Commission (SEC) will approve spot Bitcoin (BTC) exchange-traded funds (ETFs) in early January 2024, with a focus on ARK Invest’s application deadline. ETF expert Nate Geraci suggests that the final response date for ARK Invest’s joint filing with 21Shares strengthens expectations of approval within the first two weeks of January. The SEC has until January 10 to decide on ARK Invest’s bid, and Geraci speculates that this indicates a potential green light since the first spot BTC ETF was filed over ten years ago.
Negotiations Over Redemption Model for ETFs
Discussions between issuers like BlackRock and the SEC have entered their final stages, with negotiations revolving around a redemption model for the funds. The options being considered are cash creates and in-kind, each having different implications for operating costs and taxation.
Positive Outlook from Industry Leaders
Industry leaders express optimism about BTC ETF approvals. Grayscale CEO Michael Sonnenshein believes filings will receive approval from SEC Chair Gary Gensler, while ARK Invest CEO Cathie Wood sees approval as a significant endorsement for institutional investors to invest in Bitcoin and other digital assets. Galaxy Digital CEO Mike Novogratz expects spot BTC ETFs to attract billions of dollars in its first year and drive Bitcoin’s price above its all-time high.
Predictable Bull Run or Surprising Deviations?
Lars Seier Christensen, co-founder and chairman of Concordium, believes that the approval of BTC ETFs by the SEC followed by Bitcoin’s halving could lead to a textbook bull run. However, he advises caution and suggests that alternative outcomes should not be ruled out, especially as Bitcoin experiences market corrections.
Hot Take: SEC Approval of BTC ETFs Could Shape Crypto Markets
The potential approval of spot Bitcoin ETFs by the SEC in January 2024 has generated significant anticipation in the crypto community. Analysts and industry leaders predict that this move could attract institutional investors, drive Bitcoin’s price to new heights, and potentially shape the future of digital asset markets. While there is cautious optimism, experts also acknowledge the possibility of surprising deviations from the expected path. As the deadline for a decision on ARK Invest’s application approaches, all eyes are on the SEC’s ruling and its potential impact on the crypto landscape.
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