The SEC’s Window for Spot Bitcoin ETFs Opened Today: What Does This Mean?

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• There’s a rumor circulating about expected Bitcoin Exchange-Traded Funds (ETFs) that could influence the market price of Bitcoin, and recent developments indicate a 90% chance of approval by the SEC.
• An eight-day period from November 9th to November 17th may indicate that the U.S. Securities and Exchange Commission (SEC) could approve all 12 pending ETF applications.
• The reason for the window for this expected ETF approval is due to the SEC extending the deadline for pending spot Bitcoin ETF applications, with the last review date set as November 8th.

Bitcoin price rally continues amid speculations about Bitcoin Exchange-Traded Funds (ETFs): will the SEC approve spot Bitcoin ETFs?

Can the SEC Approve Spot Bitcoin ETFs?

There’s a rumor circulating about expected Bitcoin Exchange-Traded Funds (ETFs) that could influence the market price of Bitcoin, and recent developments indicate a 90% chance of approval by the SEC. The regulatory authority had been holding back the ETF applications from major crypto players like Grayscale, BlackRock, and VanEck.

Recent events show that the approval of all 12 pending ETF applications is close, and this approval marks the beginning of an eight-day period, starting today. This is good news for the crypto community, as market experts predict that Bitcoin’s market value will rise. The long-awaited approval of spot Bitcoin exchange-traded funds has created uncertainty within the crypto community because it could be a groundbreaking moment for crypto investments.

The eight-day period from November 9th to November 17th suggests that the U.S. Securities and Exchange Commission could approve all 12 pending ETF applications. According to Bloomberg’s crypto market analysts Eric Balchunas and James Seyffart, the regulatory authority is preparing to approve new crypto products within the next eight days.

Seyffart and Balchunas shared their analysis findings in a tweet on November 9th. They mentioned that the SEC might also have the luxury to approve Grayscale’s GBTC trust conversion. However, they emphasized that this is just a possibility.

According to Seyffart’s tweet, the probability of approvals happening by January 10, 2024, is still above 89%. He stated, “But if it comes earlier, we enter a window where approval orders can come for all current applicants.”

ETF and Crypto Community Expectations

Seyffart had previously commented in a tweet on November 8th, saying, “SEC has given extension orders to BlackRock, Bitwise, VanEck, WisdomTree, Invesco, Fidelity, and Valkyrie all at once.” He went further, saying, “If the agency wants to accommodate all 12 applicants – which we believe it does – this is the first window since the Grayscale court victory.”

The reason for this window of expected ETF approval is due to the SEC extending the deadline for pending spot Bitcoin ETF applications, with the last review date set as November 8th. After the window closes on November 17th, the regulatory authority will have a comment period to indicate if any of the three applications were either approved or denied. The mentioned companies include Hashdex Bitcoin ETF, Franklin Bitcoin ETF, and Global X Bitcoin ETF. This comment period will last until November 23rd from the last window date.

According to Seyffart’s analysis, nine of the 12 pending approvals can be granted before the November 17th window period ends. During these developments, the Grayscale team has reportedly started discussions with regulators about the pending spot Bitcoin ETF application, which aims to convert the GBTC trust to ETFs.

After their victory against regulators on August 29th, Grayscale has been in contact with the SEC’s Trading and Markets Division and the Division of Corporation Finance. The anticipated approval has propelled BTC’s price to fresh highs and also led to jumps in other alternative cryptocurrencies, including Ripple’s XRP, which has seen a 93% increase since scaling improvements.