SEC Officials Discuss Potential Approval of Bitcoin ETF with Exchanges

Key Points:

• SEC engages in talks with major exchanges—NYSE, Nasdaq, CBOE—hinting at imminent Bitcoin ETF approval.
• Bitcoin price experiences over 7% dip after Matrixport report, following a New Year’s Day high of nearly $45,000.

SEC is engaged in a series of meetings with major stock exchanges, NYSE, Nasdaq, and CBOE, raising optimism about the imminent approval of a much-anticipated spot Bitcoin ETF.

Sources reveal that SEC staff attorneys from the Division of Trading and Markets are collaborating with exchange officials on Wednesday to discuss the approval process. These meetings are viewed positively by insiders, suggesting the SEC’s progress in considering around a dozen applications from major financial institutions and crypto firms for the Bitcoin ETF. The focus is on refining and finalizing the 19b-4 filings submitted by the exchanges on behalf of issuers, a prerequisite for SEC clearance before the ETF can be publicly traded.

While the final decision is pending, insiders anticipate that the SEC may start notifying issuers of approval as early as Friday, potentially commencing trading next week. Confidence persists among ETF analysts and issuers, with expectations that a favorable decision will be announced on or before January 10, as the SEC continues discussions with key stakeholders.

Bitcoin’s Price Tumbles Amid SEC Decision Uncertainty

However, a note from Singapore-based crypto platform Matrixport suggests a contrary view, predicting the SEC’s rejection of all spot Bitcoin ETF applications. The report cites the Democratic majority on the five-member commission and Chairman Gary Gensler’s cautious stance on crypto as contributing factors.

This uncertainty led to a more than 7% decline in Bitcoin’s price, following a surge to nearly $45,000 on New Year’s Day, driven by anticipation of a spot ETF approval. The SEC remains tight-lipped on the outcome, stating that any updates will be made available on the EDGAR database and the Federal Register.