Recent interactions between the U.S. Securities and Exchange Commission (SEC) and several major stock exchanges have sparked optimism about the potential approval of a much-anticipated spot Bitcoin BTC/USD exchange-traded fund (ETF).
SEC staff attorneys from the Division of Trading and Markets recently met with representatives from prominent exchanges, including the New York Stock Exchange, Nasdaq, and Chicago Board Options Exchange, the platforms where the ETFs would be listed, according to a report by FOX Business. These meetings are being interpreted as a strong indication that the SEC is close to approving some or all of the 12 applications from major financial institutions and crypto companies for this product.
The SEC has requested that the exchanges complete and finalize their 19b-4 filings, which are essential for SEC clearance before the ETFs can be offered to the public. While the final decision is pending, insiders suggest that the SEC might start informing issuers about their approvals as soon as Friday, with trading potentially commencing the following week.
ETF analysts and issuers are hopeful for a positive outcome from the SEC by or before January 10, as the agency continues discussions with key stakeholders. However, there remains a possibility of denial.
Matrixport, a Singapore-based crypto platform, issued a research note predicting the SEC’s rejection of all spot Bitcoin ETF applications. This forecast was based on the Democrat majority within the SEC agency’s five-member commission and Chairman Gary Gensler’s apparent cautious approach to cryptocurrency. Following Matrixport’s report, Bitcoin’s value dropped more than 7% after almost reaching a two-year high of $45,000 on New Year’s Day, fueled by expectations of an ETF approval.
If the approval materializes, it would allow retail investors more accessible exposure to the world’s largest cryptocurrency, potentially at a lower cost compared to the already sanctioned Bitcoin futures ETF. Moreover, the involvement of well-regulated and reputable money management firms such as BlackRock Inc. BLK and Fidelity may encourage a broader spectrum of investors to include cryptocurrency in their investment portfolios.
Overall, the recent interactions between the SEC and major stock exchanges have generated optimism about the potential approval of a spot Bitcoin ETF. While the final decision is pending, market participants eagerly await the SEC’s announcement, which could have significant implications for the cryptocurrency market and provide new investment opportunities for retail investors.
