The SEC Faces Paperwork Overload for Bitcoin ETF Approval
The United States Securities and Exchange Commission (SEC) is reportedly dealing with an overwhelming amount of paperwork as the January 10 deadline for the approval of a spot Bitcoin exchange-traded fund (ETF) approaches. However, despite this paperwork burden, market participants are hopeful for a quick approval.
According to journalist Eleanor Terrett, the SEC still needs to review all the changes made to the S-1s filed by ETF issuers on Thursday and Friday. Terrett expressed doubt that approvals would happen immediately but drew comparisons to the approval process for Ethereum futures in October 2023, which had a tight timeline.
Rumors of Imminent Approval
Crypto expert Scott Melker sparked rumors when he speculated that the first Bitcoin ETF in the US could be approved by the SEC on January 2. Terrett responded by mentioning the recent time off taken by SEC staff and suggested that an approval on Tuesday or Wednesday seemed unlikely.
FOX Business journalist Charles Gasparino reported that BlackRock insiders claimed there was no communication from the SEC regarding the ETF. This further indicates that an announcement may be delayed due to the significant amount of paperwork the SEC still needs to go through.
Potential Delay or Early Approval
If the SEC manages to approve ETF proposals from firms like BlackRock, Fidelity, Invesco, Bitwise, and VanEck by January 5, they would be ahead of schedule. Bloomberg analysts previously predicted that spot Bitcoin ETFs would likely be approved closer to the end of the deadline.
An analyst named Seyffart expects an approval by January 8-10 based on a Reuters report suggesting that issuers may receive clearance to launch spot Bitcoin ETFs next week. At present, the BTC price is up 7% and trading at $45,380.
Hot Take: SEC Faces Challenges with Bitcoin ETF Approval
The SEC’s approval process for the spot Bitcoin ETF has encountered obstacles due to an overwhelming amount of paperwork. While market participants hope for a quick approval, journalist Eleanor Terrett expressed doubts about an immediate decision. Speculation from crypto expert Scott Melker added to the anticipation, but Terrett highlighted the tight timeline and recent time off taken by SEC staff. Additionally, reports from BlackRock insiders suggest a potential delay in the announcement. However, if approvals are granted by January 5, firms like BlackRock and Fidelity would be ahead of schedule. Analysts predict that spot Bitcoin ETFs may be approved closer to the end of the deadline. Despite these challenges, the BTC price continues to rise, currently trading at $45,380.
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