When Will the SEC Decide on Bitcoin ETFs?
As the deadlines for Bitcoin ETF decisions approach, many are eager to know when the U.S. Securities and Exchange Commission (SEC) will make its announcement. There are several spot Bitcoin ETF applications pending with the regulator, and while the SEC has extended its deadlines, it has also met with Grayscale and BlackRock to discuss amendments to their applications.
It’s important to note that the SEC still has the power to deny any or all of these applications. Although there is growing optimism from industry figures like Coinbase CEO Brian Armstrong and JP Morgan analysts, there is no guarantee of early 2024 approval. However, experts tracking the applicants’ odds believe that the chances have never been better and have narrowed down a potential approval window to a few days in early January.
Potential Approval Window
Bloomberg Intelligence ETF analyst James Seyffart suggests that the window for an announcement is technically from January 5 to January 10. However, he believes it is unlikely for the SEC to make an announcement on a Friday or over the weekend. Therefore, he narrows down the window to Monday, January 8 through Wednesday, January 10. Seyffart advises people to mark their calendars for these dates.
Window is officially Jan 5th to Jan 10th. Really this means that any potential approval orders are going to come on either Monday Jan 8, Tuesday Jan 9, or Wednesday Jan 10. Mark your calendars people.
— James Seyffart (@JSeyff) December 1, 2023
The Importance of a Bitcoin ETF
The crypto industry has been eagerly awaiting the approval of a spot Bitcoin ETF for years. While regulators in the U.S. have approved Bitcoin futures and leveraged Bitcoin futures ETFs, a direct Bitcoin ETF that tracks BTC itself has remained elusive.
A Bitcoin ETF would allow investors to gain exposure to BTC without actually owning or holding digital coins. This accessibility for traditional investors is expected to bring a significant influx of capital into the crypto market. Researchers at CryptoQuant believe that an ETF could double Bitcoin’s market cap and potentially increase the overall crypto market by $1 trillion.
Impacts on Bitcoin Price
The mere possibility of an approved ETF has had a bullish effect on Bitcoin’s price. The attention from institutions and the upcoming Bitcoin halving, which limits inflation and increases demand, have also contributed to its positive performance.
Disclaimer
The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice.
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