Alliancebernstein’s Research Arm Expects Approval of Spot Bitcoin ETF in January
Alliancebernstein’s research arm, Bernstein Research, predicts that the U.S. Securities and Exchange Commission (SEC) will approve its first spot bitcoin exchange-traded fund (ETF) in January 2024. In a memo sent to Thestreetcrypto, Bernstein Research stated that a bitcoin ETF in early January is now highly likely.
Waiting for the SEC’s Response
The market was eagerly anticipating the SEC’s decision regarding the appeal against the Grayscale verdict. Grayscale Investments, the largest crypto asset manager, wants to convert its bitcoin trust (GBTC) into a spot bitcoin ETF. Although the SEC initially rejected the application, the court ruled in favor of Grayscale and instructed the regulator to reassess it.
The Bernstein Research memo explains that since the SEC has chosen not to appeal and has actively engaged with ETF applications through edits and comments, it is highly probable that an approval will be granted by the January 10 deadline.
Number of Applications Under Consideration
SEC Chairman Gary Gensler has confirmed that there are eight to ten spot bitcoin ETF applications currently being reviewed. Public records show that there are 12 spot bitcoin ETF applications awaiting evaluation at the SEC, including Grayscale’s request to convert GBTC into a spot bitcoin ETF.
Other applicants include ARK Investment Management, Blackrock, Bitwise, Wisdomtree, Fidelity, Vaneck, and Invesco. Eight applications have review dates in the first quarter of next year, while three have review dates in the second quarter.
Potential Approval of Multiple Spot Bitcoin ETFs
Analysts such as those at JPMorgan believe that the SEC may approve multiple spot bitcoin ETFs simultaneously. The recent surge in bitcoin’s price was fueled by speculation that Blackrock, the world’s largest asset manager, is nearing the launch of its spot bitcoin ETF.
Hot Take: Positive Outlook for Spot Bitcoin ETF Approval
Alliancebernstein’s research arm, Bernstein Research, is optimistic about the approval of a spot bitcoin ETF by the SEC in January 2024. With the regulator actively engaging with ETF applications and choosing not to appeal against the Grayscale verdict, the probability of approval by the January 10 deadline appears highly likely. This anticipated approval could pave the way for a new wave of investment opportunities in the crypto market.
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