January 10th Approval Deadline: Analysts Keep Watch on Spot Bitcoin ETF

Approval Deadline for Spot Bitcoin ETF

Research experts expect the U.S. Securities and Exchange Commission (SEC) to approve a spot bitcoin ETF before January 10th, 2024, despite recent changes. Bloomberg ETF analyst James Seyffart suggests that while many experts anticipate approvals between January 8th and 10th, some issuers may be left behind.

Last-Minute Changes

Blackrock and ARK Invest, two spot bitcoin ETF hopefuls, updated their S-1 registration statements to comply with federal regulations. They amended their applications to follow a cash creation system instead of in-kind transactions at the SEC’s request. The SEC’s position is understandable as it ensures transparency in acquiring underlying Bitcoin for the ETF.

Positive Signs for Approval

Bloomberg ETF analyst Eric Balchunas views the cash-only updates as a positive sign. He believes that the SEC and spot bitcoin ETF applicants are aligning their strategies before the holidays. However, cash creations are less attractive to investors due to potential taxable events.

Mainstream Adoption Potential

If a spot bitcoin ETF is approved in January, it could pave the way for mainstream adoption of cryptocurrencies in the U.S. Stringent regulatory concerns have slowed down the approval process, but with the necessary updates made by issuers, approval may be imminent.

Hot Take: Spot Bitcoin ETF Analysts Eye January 10th Approval Deadline

The approval deadline for a spot bitcoin ETF by the SEC is anticipated to be January 10th, 2024. Despite last-minute changes and regulatory concerns, experts believe that approvals will occur between January 8th and 10th. Cash-only updates made by Blackrock and ARK Invest indicate progress in aligning with SEC requirements. If approved, a spot bitcoin ETF could drive mainstream adoption of cryptocurrencies in the U.S. However, cash creations may pose challenges for investors due to potential taxable events. The SEC’s strict stance on these updates suggests that once S-1s reflect them, issuers may be on track for approval.