In a notable development, the U.S. Securities and Exchange Commission (SEC) has issued guidance forcing participants in the Bitcoin Exchange Traded Fund (ETF) space to immediately update their applications. This guidance has raised expectations within the cryptocurrency community as it coincides with upcoming decisions on major ETF applications, including from industry giants such as Ark Invest.
SEC’s call for Bitcoin ETF applications
The United States Securities and Exchange Commission has begun accepting applications by exchanges, a sign of approval for spot Bitcoin ETF listing. The SEC’s latest call for action specifically relates to 19b-4 filings, which are a critical component in the process of listing and trading ETFs on major exchanges such as Nasdaq and NYSE. While some recently amended filings may now be exempt from further SEC feedback, the community is eager to gain clarity on whether this exemption applies to newly filed versions or those that have already been filed.
In parallel with the 19b-4 filings, attention has also focused on the approval of S-1 filings that rigorously describe the ETFs in question. Notably, these S-1 filings have undergone changes through December 29. Bloomberg ETF analyst Eric Balchunas adds an intriguing layer to the emerging narrative, suggesting that final S-1 filings expected Monday could point to a potential ETF launch on Jan. 11, just one day after SEC commissioners’ pivotal vote on exchange rules.
The date of January 10 is critical
In light of all these developments, SEC commissioners are preparing to make critical votes on stock exchange rules next week. This pivotal decision-making moment has the potential to pave the way for a rapid and effective ETF launch. The decision regarding the application of Ark Invest and 21 Shares, which is planned to be given on January 10 and will affect the fate of other pending applications, is of particular importance. Decisions made by the SEC in the coming weeks will have significant consequences for the broader cryptocurrency market. The approval of ETFs, particularly those that track Bitcoin’s performance, is seen as a monumental step towards mainstream adoption of crypto assets in traditional financial markets.
The SEC’s past rejections of Bitcoin ETF applications were based on concerns about potential price manipulation and liquidity challenges. However, the evolving landscape suggests a potential shift in regulatory stance towards a more conciliatory approach. While the global cryptocurrency community remains on edge as it awaits the SEC’s decisions, these emerging developments could be a critical turning point in the broader acceptance and integration of crypto assets within traditional financial systems. The coming weeks promise to be transformative, potentially ushering in a new era of investment and market dynamics.
Predictions for after ETF approval
Meanwhile, Nate Geraci, President of The ETF Store, predicts that spot Bitcoin ETFs will eclipse all previous ETF launch records in 2024. Despite skepticism from some of his industry peers, Geraci is confident that growing demand for spot Bitcoin ETFs will overcome potential hurdles such as a less dynamic crypto market, cautious financial advisors looking for a solid track record, and restrictions imposed by brokers and asset management platforms.
Geraci’s optimism stems from the entry of major asset managers such as BlackRock, Fidelity and Invesco into the spot Bitcoin ETF arena. These industry heavyweights are expected to not only validate the market but also attract early investors, potentially reshaping the landscape of cryptocurrency investments. Besides these major players, other major ETF issuers such as WisdomTree, VanEck and Global X also compete. As Grayscale explores converting its $26 billion Grayscale Bitcoin Trust (GBTC) into an ETF, ARK Invest and Franklin Templeton are also among the notable contenders. Geraci claims that high demand from investors will push spot Bitcoin ETFs to rewrite the ETF record books, regardless of the future path of the Bitcoin price.
To be informed about the latest developments, follow us Twitter’in, Facebookin and InstagramFollow on . Telegram And YouTube Join our channel.