US Regulators Warming Idea Of Spot Bitcoin ETFs Approval: Report

Key Points:

• Discussions between regulators and Bitcoin ETF applicants have progressed to spot Bitcoin ETFs approval to become a reality soon.
• Meetings between the SEC and Bitcoin ETF funds have accelerated, leading to changes in filings based on regulators’ feedback.
• Grayscale, BlackRock, and Fidelity are among the companies that have applied for a Bitcoin ETF, with approval potentially coming in January 2024.

According to Forbes, US Regulators are reportedly warming to the idea of spot Bitcoin ETFs approval. Meetings between SEC and applicants have progressed to key technical details. Experts believe the approval window is January 5-10, 2024.

Discussions between U.S. financial regulators and applicants for a Bitcoin exchange-traded fund (ETF) have progressed to “key technical details,” signaling that the much-anticipated offering may soon become a reality.

Meetings between the Securities and Exchange Commission (SEC) and investment funds seeking to list Bitcoin ETFs have accelerated in recent weeks, leading applicants to make changes to their filings based on regulators’ feedback.

This development comes after a federal court ruling in August that requires the SEC to reconsider Grayscale’s previously rejected Bitcoin ETF application, potentially reducing the grounds for rejecting other applications.

US Regulators Warming Idea Of Spot Bitcoin ETFs Approval

Grayscale, along with firms like BlackRock and Fidelity, is among the dozen companies that have applied for a Bitcoin ETF. This type of ETF would allow investors to gain exposure to Bitcoin without directly owning the digital asset.

Experts, including Bloomberg Intelligence analyst James Seyffart, believe that the window for approval of a Bitcoin ETF is January 5-10, 2024, coinciding with the deadline of the application from ARK Invest, led by Cathie Wood.

Bitcoin’s Performance and Background

Bitcoin has surged approximately 160% year-to-date, outperforming major stock indexes, although it remains about 35% below its late 2021 peak. This resurgence comes after a challenging 2022 for cryptocurrencies, marked by bankruptcies and financial turmoil.

Bitcoin fell slightly after hitting $44,500 over the last 24 hours. As of this writing, the king of cryptocurrency is trading for $43,500. The entire cryptocurrency market capitalization is up nearly 1% today, now valued at $1.6 trillion.

The approval of a spot Bitcoin ETF would be significant as it would provide investors with exposure to the largest digital asset without the need to directly trade on exchanges.

SEC Chairman Gary Gensler, who was previously skeptical of crypto, has shown signs of warming to the idea of opening the door for wider Bitcoin investment.

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