SEC's Eight-Day Window to Approve 12 Bitcoin ETF Applications Fuels Crypto Market Optimism
Summary:
The U.S. Securities and Exchange Commission (SEC) has an eight-day window to approve all 12 of the pending spot Bitcoin exchange traded fund (ETF) applications, according to Bloomberg analysts. Potentially, nine out of the twelve could get approved ahead of January 10. Meanwhile, Grayscale reportedly has initiated discussions with the SEC to convert its GBTC trust product into a Bitcoin ETF. This possible approval has spurred optimism in the crypto market, reflected by Bitcoin's price increase over the past three months.
The U.S. Securities and Exchange Commission (SEC) has a potential window of eight days to greenlight all 12 of the pending spot Bitcoin exchange traded fund (ETF) applications. Bloomberg analysts James Seyffart and Eric Balchunas noted that the SEC has this opportunity from November 9 to November 17 to approve all the filings, including Grayscale’s proposition to turn its GBTC trust product into a Bitcoin ETF.
On November 8, Seyffart tweeted that the SEC simultaneously issued delay orders for ETF applications from BlackRock, Bitwise, VanEck, WisdomTree, Invesco, Fidelity & Valkyrie. He added that the first window for all 12 applicants to launch has been made available after Grayscale's legal triumph. The short window is due to the SEC setting November 8 as the final date for comments on the majority of the ongoing ETF filings.
Starting from November 17, the comment period for three filings, including those from Global X Bitcoin Trust, Hashdex Bitcoin ETF, and Franklin Bitcoin ETF, would begin again, hence, their approval or rejection won't be decided until after November 23. Seyffart has mentioned that the SEC is technically able to decide on nine out of the twelve filings before January 10.
Predictions from Balchunas and Seyffart estimate a 90% chance of approval for a Bitcoin ETF before January 10 of next year, though it is not a certainty. Meanwhile, Grayscale has begun discussions with the SEC about its proposition to transform its GBTC trust product into a Bitcoin ETF, as reported by CoinDesk on November 9.
The likelihood of a Bitcoin ETF approval has given a boost to the cryptocurrency market, with a 30% increase in Bitcoin’s price over the past three months. Major assets have also benefitted from Bitcoin's surge. Recently, Solana (SOL) grew a remarkable 93% in response to scaling enhancements, with Ripple (XRP) and Ether (ETH) also experiencing growth.
However, industry experts are divided, with some feeling confident that a Bitcoin ETF approval will be a catalyst for a bull market, while others remain skeptical about the sustainability of the rally.
Published At
11/9/2023 1:45:12 AM
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