- The SEC has unofficially approved Bitcoin Spot ETFs.
- Key players in the race for the ETF have completed one of the final steps in the regulator’s approval process.
- Despite the positive development, the market remained unswayed.
The journey toward a Bitcoin ETF’s approval appears to be reaching its climax after four long months of regulatory anticipation and constant delays from the Securities and Exchange Commission (SEC).
Experts are already raising their glasses to what they consider a triumphant victory, confidently declaring it ‘done,’ as the SEC finally shows the light at the end of the tunnel for the eagerly awaited Bitcoin ETF by accepting filings by exchanges.
Bitcoin ETF Receives Unofficial Approval
On January 5, key players in the race for the Bitcoin Spot ETF, including BlackRock, Grayscale, 21Shares, and others, submitted 19b-4 amendments in response to the SEC’s request. This significant development signals an important stage for the Bitcoin ETF, indicating that the regulator had no additional feedback and had unofficially approved their proposals.
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The 19b-4 filing is one of the final steps in the SEC’s approval process, after which the asset managers will complete their S-1 documents for US Exchanges like NASDAQ to list shares of investment securities.
According to senior Bloomberg analyst Eric Balchunas, the final S-1 documents from the asset managers are due 8 am on Monday as the SEC ensures everything is speckless before it announces its decision next week.
Should asset managers complete their S-1 documents in time, the ETF is poised to start trading on Thursday. Experts anticipate at least 11 proposals to be approved. Still, despite the wait ending, the market’s reaction to the news has been less than exciting.
Bitcoin Doesn’t Move Despite Positive ETF News
The crypto market remains stuck in a tight range despite the positive development. Bitcoin, in particular, is trying to recover from its fall earlier this week, struggling to close above 44,000. Subsequently, altcoins like Solana and Ethereum mirror this trend, bleeding slowly while the reigning crypto king navigates through turbulence.
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At press time, Bitcoin exchanged hands $44,000 with a trading volume exceeding $16 billion. Investors and market players are exercising caution, as open interest in perpetual futures contracts remains low, indicating a reluctance among investors to open new long positions after last month’s rally.
While the Bitcoin Spot ETF approval is an exciting development for the crypto industry, some analysts are unswayed by the prevailing optimism, warning that the market dynamics could turn the anticipated announcement into a ‘sell-the-news’ event.
On the Flipside
- There are rumors that BlackRock will buy $2 billion worth of bitcoin following the ETF approval.
- The earliest deadline for SEC approval is January 10. However, the commission might extend this date if its decision-making process takes longer.
- A January 3 Matrixport report projected a likely rejection of all Bitcoin ETFs, sending the crypto market into a price crash.
Why This Matters
The Bitcoin Spot ETF is a major leap forward for the crypto industry. The asset could bring in a lot of TradFi exposure to BTC, allowing it to surge even further. However, due to the SEC’s uncertain nature, there’s a lot of fear surrounding the regulator’s decision, with many speculating that it could introduce another delay.
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