Done Deal: Bitcoin ETF Launch as Early As Next Week
Only A few days ago mainstream media caused a flash crash reporting that the Bitcoin-ETFs were unlikely to be approved. This information was baseless and created just to cause hype and sell papers.
The truth is more centred around an approval as early as next week.
As we usher in the new year the crypto currency market is hyped with anticipation over the potential approval of spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC).
Recent reports suggest that the SEC has been engaged in crucial meetings with major stock exchanges signalling a significant development in the regulatory landscape for crypto currencies.
Here's what we know so far!
SEC Nears Approval: Meetings with Stock Exchanges
Recent discussions between the SEC and major stock exchanges including the New York Stock Exchange (NYSE), Nasdaq and Chicago Board Options Exchange (CBOE) indicate that the regulatory body is in the final stages of reviewing applications for spot Bitcoin ETFs. The focus of these meetings has been on revising and finalizing the 19b-4 filings submitted by the exchanges on behalf of ETF issuers which is a prerequisite for SEC clearance before the ETFs can be sold to the public.
Insiders suggest that the SEC might notify issuers of approval as early as this coming Friday paving the way for the trading of spot Bitcoin ETFs to commence as soon as next week. This potential decision comes amid a backdrop of fluctuating confidence in the crypto market.
The anticipation of spot Bitcoin ETF approval has had a palpable impact on the crypto currency market. Analysts and issuers remain optimistic expecting a favourable decision from the SEC on or before January 10. However, the recent release of a research note from Matrixport suggesting potential rejection by the SEC led to a more than 7% drop in Bitcoin's price. This has been proven to be hearsay and might actually account for some applications being rejected but not all.
Don’t Forget About Ethereum
The potential approval of spot Bitcoin ETFs is viewed as a milestone for the crypto currency industry. If approved, it would provide retail investors with greater access to the world's largest digital asset at a lower cost compared to currently approved futures ETFs.
Trusted and highly regulated money management firms like BlackRock or Fidelity entering the space could also broaden the investor pool attracting more participants to include crypto currencies in their portfolios.
It’s important to note that Bitcoin isn’t the only ETF being applied for with BlackRock also applying for an Ethereum ETF so we could anticipate a launch of both Bitcoin and Ethereum at the same time.
Approval Confidence
Despite the market's fluctuations and speculation surrounding the SEC's stance analysts continue to express confidence in the approval of spot Bitcoin ETFs.
Meetings between the SEC and exchanges coupled with updated filings from applicants suggest a positive outcome. Finance analysts have emphasised that the SEC's engagement in meetings with major exchanges is a strong indicator of imminent approval, as the regulatory body is unlikely to invest resources if rejection were the intended outcome.
Analysts, including Scott Johnsson, Eric Balchunas, and James Seyffart have reiterated their expectations for spot Bitcoin ETF approvals between January 8 and January 10. The recent filings by major institutions, such as VanEck, Grayscale, and Fidelity, further support the optimistic outlook for the approval of spot Bitcoin ETFs.
If the SEC indeed approves spot Bitcoin ETFs, the crypto currency market is poised for significant growth. The ETFs would offer a streamlined and regulated entry point for institutional and retail investors with potential to lead to substantial inflows. Analysts, including Eric Balchunas, predict that the asset class could be worth billions once the SEC begins approving Bitcoin ETFs.
In the long term, the introduction of spot Bitcoin ETFs could bring about a transformative shift in crypto currency trading and making it more cost effective and efficient. With reputable brands entering the space and regulatory approval providing credibility. The crypto currency market may witness increased participation from institutional investors while fostering a more liquid and accessible trading environment.
Open for Trade As Early As Next Week!
As the January 10th decision deadline approaches the crypto currency community eagerly awaits the SEC's decision on spot Bitcoin ETFs. The outcome of these deliberations could mark a pivotal moment in the evolution of the crypto currency.
Opening new avenues for investment and potentially reshaping the future of digital asset trading. The impact of this decision extends beyond immediate market reactions heralding a new era of legitimacy and acceptance for crypto currencies in the financial landscape making them a mainstream investment option.
After this crucial stage we will probably see a vast amount of development occur and then we might even see crypto currencies accepted as payment across many markets. But let’s not jump to far and take one stride at a time.
Image sources provided supplemented by Canva Pro subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.