SEC Approves Bitcoin ETFs for Immediate Trading!

Key Points:

• SEC’s Jan. 10 deadline sparks speculation on ETF approvals.
• Approval may lead to substantial inflows from retail and institutional investors.
• Market underestimating impact, potential for a 160% surge.

Bitcoin ETFs – exchange-traded funds (ETFs) backed by Bitcoin in the United States is approaching.

Participants in this high-stakes endeavor face a looming deadline, requiring any last-minute revisions to their pending applications to be submitted by Monday morning in Washington.

The U.S. Securities and Exchange Commission (SEC), in turn, has until January 10 to take action on at least one of these applications. Industry insiders anticipate the regulator may use this date to make a collective announcement on multiple decisions. Two critical technical requirements must be met for spot-backed Bitcoin ETFs to commence trading: approval of 19b-4 filings by the exchanges listing the Bitcoin ETFs and endorsement of the corresponding S-1 forms, the registration applications from potential issuers, including financial giants BlackRock and Fidelity.

SEC is scheduled to vote on the exchanges’ 19b-4 filings in the coming days. The regulator may subsequently address the issuers’ S-1 applications around the same time. Should the SEC grant approvals for both components, the ETFs could potentially begin trading as early as the next business day. The SEC, however, has remained tight-lipped about the status of these applications.

SEC Set to Greenlight Bitcoin ETFs

Advocates of Bitcoin foresee ETFs backed by the leading cryptocurrency as a transformative moment for the digital asset industry, with billions of dollars poised for potential inflows from both retail and institutional investors. Michael Anderson, co-founder of crypto venture firm Framework Ventures, emphasizes that the market is underestimating the profound impact of a Bitcoin ETF approval.

Historically, the SEC, led by Democrat Gary Gensler and his Trump-era predecessor Jay Clayton, has hesitated to greenlight such products, citing concerns over investor protection and the susceptibility to market manipulation. Despite this, speculation has intensified since August, following the SEC’s legal setback against crypto asset manager Grayscale Investments, suggesting that the regulator may yield to the increasing demand for this financial product.

Market sentiment, fueled by expectations of regulatory approval, led to a remarkable 160% surge in Bitcoin prices last year. Despite this, the cryptocurrency has yet to reclaim the record highs achieved in November 2021, hovering around $45,000 since the onset of 2024.