Anticipation Builds for Potential SEC Approval of Bitcoin ETF

The financial community is abuzz with speculation that the U.S. Securities and Exchange Commission (SEC) might soon approve a spot Bitcoin exchange-traded fund (ETF).

by Faruk Imamovic
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Anticipation Builds for Potential SEC Approval of Bitcoin ETF
© Getty Images/Dan Kitwood

The financial community is abuzz with speculation that the U.S. Securities and Exchange Commission (SEC) might soon approve a spot Bitcoin exchange-traded fund (ETF). Social media platforms, particularly Twitter, have been alight with discussions and predictions about this development.

A tweet from Grayscale's chief legal officer, cryptically stating he was “just filling out some forms,” has added fuel to the speculative fire. This tweet alone has attracted significant attention, garnering 1.9 million views and over 6,700 likes.

The hashtag #BTCETF and the term “Bitcoin ETFs” are trending, indicating widespread interest in this potential market development. Correspondingly, Bitcoin's price has seen an uptick, rising 3.4% in the last 24 hours according to TradingView data.

Trader Scott Melkor responded to the online buzz by noting, “The rumor mill is going full steam”.

Analysts Temper Expectations

Despite the growing excitement, some analysts are advising caution.

Bloomberg ETF analyst James Seyffart described much of the speculation around a January 5th approval as mere noise, expecting the approval to occur between January 8th and 10th. Attorney and commercial litigator Joe Carlasare pointed out that the public comment period for several ETF applications doesn’t close until midnight on January 5th, making it “very unlikely” that approval would come before the start of the next week.

Senior Bloomberg ETF analyst Eric Balchunas highlighted that the SEC is currently providing final comments and that issuers are expected to file their final 19b-4 and S-1 forms soon. Scott Johnsson, general partner at VB Capital, expressed skepticism about an early approval, noting the improbability of the SEC not caring about simultaneous approval for the 19b-4 applications.

As the financial community eagerly awaits the SEC's decision, 14 issuers, including BlackRock, Valkyrie, ARK Invest/21 Shares, Bitwise, and Fidelity, are in the running for a spot Bitcoin ETF. This decision, whenever it arrives, is poised to be a significant moment in the cryptocurrency market, potentially paving the way for greater mainstream adoption of digital assets.

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