According to the latest developments, the SEC made final calls to issuers on Thursday. In this regard, it has been reported that it may approve more than one spot-based Bitcoin ETF application very soon. BTC regained almost all of its losses from Wednesday’s flash crash amid this news. A survey shows that only 39% of financial advisors expect approval of a Bitcoin ETF this year. However, it reveals that 88% would be interested in purchasing BTC after approval. Matrixport’s Marcus Thielen predicts that investors will focus on Ethereum once the bitcoin ETF is approved.
Spot Bitcoin ETF coming soon!
Bitcoin surpassed $44,000 as optimism remained that a spot ETF approval was imminent. cryptokoin.comAs you follow from , Matrixport released a report on Wednesday warning of a possible rejection. This report triggered a rapid 10% decline in Bitcoin. However, most observers continue to expect the SEC to approve the filings, possibly by Friday.
Bloomberg ETF analyst Eric Balchunas announced in a statement in the US in the afternoon that the agency offered the final comments on the applications. He also noted that prospective Bitcoin ETF issuers will then update their applications accordingly.
Shortly after, TechCrunch reporter Jacquelyn Melinek, citing sources “extremely familiar with the matter,” said the SEC would soon approve multiple applications.
Progress towards a spot Bitcoin ETF
Over the past two days, multiple prospective spot Bitcoin ETF issuers have filed Form 8-As, another step in the process. These include Fidelity, Grayscale, Ark Investments, Valkyrie and VanEck. The move amounts to registration allowing issuers to trade on an exchange once the product is approved.
Over the past several months, issuers have been working closely with the SEC to address their remaining concerns. Three key issues were addressed, including what redemption models to use, naming authorized participants, and how to manage hard forks and airdrops. BlackRock, for example, named Jane Street Capital and JP Morgan Securities as authorized participants last week. Valkyrie named Jane Street Capital and Cantor Fitzgerald. According to sources, Goldman Sachs also wants to be involved in this process.
Some uncertainties remain
James Angel, an associate professor at Georgetown University, predicts that the agency will further delay the spot Bitcoin ETF launch. According to Angel, there are a number of ways the SEC could slow things down even further. In this context, Angel said:
They can basically go to the issuer and say, if you want an answer today, that’s no. What we want you to do is withdraw your application and refile to start the clock over again, and that’s what we want you to do. Although there are deadlines, the SEC has plenty of ability to force registrants to voluntarily accept a delay. In this case, issuers can go to court, but this will take months.
Will Ethereum be next after Bitcoin ETF?
Matrixport head of research Markus Thielen, author of yesterday’s report predicting a potential rejection or delayed approval, says he expects the US agency to eventually allow spot-based ETFs. However, he predicts that Bitcoin will decline to lower prices in the coming weeks. He states that technical indicators also indicate that the upward trend has paused.
Thielen also says that once spot Bitcoin ETF products are given the green light, investors will quickly turn their focus to Ethereum (ETH), the second-largest cryptocurrency, and a decision on spot-based Ethereum ETF applications will likely be made around May.
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