SEC May Approve Bitcoin ETF Soon, Says Analyst

The U.S. regulator, the SEC, is close to making history by allowing exchange-traded funds (ETFs) that invest in bitcoin. These funds track the price of bitcoin and can be traded on stock exchanges. Ark Invest and 21Shares are two companies that want to launch Bitcoin ETFs. They are waiting for the SEC’s decision, due by Jan 10. Their Bitcoin ETF was one of the first to apply again in 2023 after many rejections in the past.

Many other companies, such as BlackRock, Fidelity, Bitwise, Invesco, Grayscale, and more, also want to launch Bitcoin ETFs. They joined the race in June when BlackRock applied. Some experts think the SEC may approve more than one Bitcoin ETF simultaneously.

James Seyffart, an analyst at Bloomberg Intelligence, thinks the SEC will decide next week. He said the companies had to submit many documents, such as Form S-1s, to the SEC. These documents explain how the funds work, how they invest in bitcoin and other important information.

A senior analyst at Bloomberg has claimed that exchange-traded funds (ETFs) that invest directly in Bitcoin are a done deal. Eric Balchunas, who covers the ETF industry, said that the applications for Bitcoin spot ETFs have reached the final stages of approval by the U.S. Securities and Exchange Commission (SEC).

According to Balchunas, the crypto spot ETF is essentially finished, and the final form S-1 registration statements are expected to be filed by Monday morning, U.S. time. He added that the SEC aims to launch the Bitcoin spot ETFs on Jan 11, pending official confirmation.

SEC Staff Gives The Green light To Bitcoin ETF Documents

Balchunas’s statement is based on a recent report that revealed that the SEC staff accepted the final version of the ETF documents on Friday. The report cited four unnamed sources who were familiar with the situation.

However, the ETF documents, known as 19b-4 filings, propose rule changes on stock exchanges to enable the trading of the ETFs. Also, the SEC staff should have provided further feedback on the filings for several applicants, implying that they had met the SEC’s standards. Balchunas confirmed this, saying, “Yeah, it’s done.”

However, only some in the crypto community are convinced that the Bitcoin spot ETFs will get the SEC’s approval this month. Although, some influential figures have expressed doubts and caution, adding a touch of skepticism to the prevailing optimism.

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Furthermore, the author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.

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