Imminent Approval of Bitcoin Spot ETF Sparks Buzz Across Social Media
Summary:
Speculation about the imminent approval of a Bitcoin spot exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC) has grown rapidly on social media. This conjecture was invigorated by a pair of tweets, one from Grayscale's legal chief and the other from a TechCrunch reporter, hinting at possible approvals. Meanwhile, prominent experts anticipate official authorization to occur sometime next week. Amid speculation, Bitcoin's price has also seen an uptick. However, there's still uncertainty among some professionals, including the view from VB Capital, considering the intricacy of the approval process involving key form submissions.
The U.S. Securities and Exchange Commission (SEC) may be on the brink of authorizing a Bitcoin spot exchange-traded fund (ETF), according to rampant speculations on social media. Grayscale's chief legal executive posted a seemingly incognito tweet about completing paperwork, which, combined with a reporter's tweet, has massively fueled the conjecture of an imminent approval. Nevertheless, a number of experts are leaning towards a possible authorization to take place next week. In a previous Twitter notice dated January 4, Jacquelyn Melinek, a TechCrunch reporter, referenced sources "with intimate knowledge of the situation" predicting that multiple ETFs would gain clearance and hinted at an announcement the next day.
A particular tweet from Grayscale’s primary legal executive, discussing his form-filling activities, has incited widespread interest and drawn nearly two million views and six thousand seven hundred likes. Concurrently, the hashtag #BTCETF and the phrase "Bitcoin ETFs" are currently trending on Twitter. The price of Bitcoin has been climbing, marking a 3.4% increase in the last 24 hours after a hefty fall on January 3.
Trader Scott Melkor referred to the rampant trading gossip across social platforms as the rumor mill operating at full throttle. Contrarily, James Seyffart, a Bloomberg ETF analyst, dismissed the January 5 approval speculation as mere "noise", expressing his anticipation for the authorization to occur between January 8 and January 10. Eric Balchunas, a senior Bloomberg ETF analyst, indicated the SEC's final remarks stage, predicting a soon submission of final 19b-4 and S-1 forms by issuers.
Both of these document types are crucial for an ETF to initiate trading, with an approved 19b-4 required for the spot Bitcoin ETF to gain official approval. Despite speculation, Scott Johnsson from VB Capital remained uncertain about ETF approval happening before next week, adding another layer of unpredictability to the situation. Currently, there are 14 issuers, including ARK Invest/21 Shares, BlackRock, Bitwise, Fidelity, and Valkyrie, waiting and competing for a Bitcoin spot ETF.
Published At
1/5/2024 4:51:11 AM
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