This week holds crucial deadlines marking the culmination of a lengthy effort to launch Bitcoin-backed exchange-traded funds (ETFs) in the US. Companies seeking to launch these ETFs must submit any final changes to their applications by Monday, with the Securities and Exchange Commission (SEC) having until January 10 to take action on at least one application, potentially announcing multiple decisions simultaneously.
Before a spot-backed Bitcoin ETF can trade, two conditions need to be met. The SEC must approve 19b-4 filings from the exchanges that would list the ETFs, and the regulator must also give the green light to the S-1 forms from the issuers, including firms like BlackRock and Fidelity.
Reports suggest that the SEC is set to vote on the exchanges’ filings in the next few days. Afterward, the regulator may or may not act on the issuers’ applications around the same time. If both sets of approvals are granted, trading for the ETFs could commence swiftly.
Bitcoin enthusiasts anticipate that ETFs backed by the primary cryptocurrency could signify a groundbreaking moment for digital assets, attracting substantial investment from both retail and institutional sources. However, previous SEC administrations have hesitated to approve such products, citing concerns about investor protection and market manipulation.
There’s been growing speculation, especially after a legal battle lost by the SEC against Grayscale Investments in August, that the regulator may yield to the mounting demand for this product.
Market sentiments are leaning toward the anticipation of regulatory approval, which fueled a significant rise in Bitcoin last year, although the token has yet to reclaim the record highs of November 2021. As of Monday morning, Bitcoin sat around $43,640, reflecting a broader dip in the crypto markets at the start of the week.
