- This development emerged as part of the institution’s processing of an application related to Franklin Templeton and Hashdex’s spot BTC ETF.
- According to Bloomberg’s Seyffart, the condition of all public comments being submitted by January 5 implies that approval could happen before January 10.
- An exchange-traded fund allows investors, especially institutional ones, to be indirectly exposed to Bitcoin.
SEC to Open Approval Window for Spot Bitcoin ETFs: Renowned ETF analyst shares details about the SEC’s window.
What Will the SEC Do in the Face of an Open Window Opportunity?
As optimism grows regarding the potential approval of several spot Bitcoin exchange-traded fund (ETF) applications, Bloomberg analyst James Seyffart tweeted (now X) that the Securities and Exchange Commission (SEC) will have a narrow window from January 8 to 10 to make a decision on whether to reject or approve the applications.
This development emerged as part of the institution’s processing of an application related to Franklin Templeton and Hashdex’s spot BTC ETF. In the application, the SEC commits to “process and review” the public comments received regarding the application. These comments must be submitted to the institution by January 5, 2024.
According to Bloomberg’s Seyffart, the condition of all public comments being submitted by January 5 implies that approval could happen before January 10. Seyffart stated:
“The window is officially from January 5 to January 10. This really means any potential approval order would come on Monday, January 8, Tuesday, January 9, or Wednesday, January 10. Mark your calendars.”
The SEC currently has over 12 Bitcoin spot ETFs to consider for approval or rejection. Many companies, such as BlackRock and Grayscale, have diligently prepared their proposals and are ready to launch them to the market for approval.
Grayscale won a lawsuit against the SEC over its request to convert Bitcoin Trust (GBTC) shares to a spot ETF, leading to the belief that the chances of approval are higher. The SEC typically approves multiple proposals, as seen with Ethereum futures ETFs. This ensures that all companies wishing to operate revolutionary products have an equal chance in the market.
What Is the Impact of BTC ETF Approval?
An exchange-traded fund allows investors, especially institutional ones, to be indirectly exposed to Bitcoin. This is achieved by purchasing shares of an investment product that tracks the Bitcoin spot price through a brokerage, similar to buying shares of a publicly traded company.
Investing in an ETF frees investors from the difficulty of navigating the digital asset world on crypto exchanges and eliminates storage requirements such as securing private keys. Spot ETFs also increase demand for Bitcoin and provide assurance that Bitcoin is now a mature asset class.
