The SEC’s time crunch for spot Bitcoin exchange-traded funds (ETFs) signals an imminent decision, set to arrive soon.
Anticipation looms over the potential approval of a US spot Bitcoin ETF, sparking a global Bitcoin surge. The SEC faces a deadline on January 10 to rule on the ETF applications. Analyst James Seyffart predicts approvals for most but Grayscale, citing its unique setup requiring extra time.
Seyffart gives a 90% chance for SEC approval, noting significant SEC-asset manager engagements and a legal setback favoring approval. Denial seems unlikely without fresh grounds or application withdrawals, he asserts.
If approved, the Bitcoin ETF could offer a regulated path for investors to engage with Bitcoin, nudging its mainstream acceptance. Institutional investors might cautiously adopt it, conducting thorough assessments before integration.
Seyffart foresees around $10 billion inflow into Bitcoin ETFs in the first year, cautioning against immediate massive inflows exceeding $100 billion, akin to gold ETFs’ total value in the US. This projects Bitcoin ETF growth potential while acknowledging market limitations.
With the January 10 deadline near, the crypto sphere awaits the SEC’s decision, pivotal for crypto investment history. A Bitcoin ETF approval could alter retail and institutional investment landscapes, shaping Bitcoin’s place in mainstream portfolios.
