SEC May Begin Spot Bitcoin ETF Approvals This Week as Regulator Meets with Stock Exchange Officials

SEC May Begin Spot Bitcoin ETF Approvals This Week as Regulator Meets with Stock Exchange Officials

UTC by Mayowa Adebajo · 3 min read
SEC May Begin Spot Bitcoin ETF Approvals This Week as Regulator Meets with Stock Exchange Officials
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According to sources familiar with the ongoing ETF proceedings, an approval could be announced on Friday, with trading beginning as early as next Monday.

There is an improved confidence that the long-awaited approval of a spot Bitcoin exchange-traded fund (ETF) may finally be here. This follows after the US Securities and Exchange Commission (SEC) met with some stock exchanges on Wednesday, further fueling the anticipation.

By meeting with officials from major exchanges including Nasdaq, the New York Stock Exchange (NYSE), and the Chicago Board Options Exchange (CBOE), it appears that the SEC may just be finalizing things concerning where the ETFs would trade.

As learned by Coinspeaker, the SEC has asked each of the exchanges to revise and put their so-called 19b-4 filings in order. The filings, which the exchanges submitted on behalf of issuers, will be subject to the SEC’s clearance before the ETF can be sold to the public.

There have been various speculations about how soon the ETF approvals will come. However, the one that has been severally reported is January 10. That is despite that there hasn’t been any official word from the SEC to confirm those reports.

Spot Bitcoin ETF Applicants Tipped to Receive SEC Notifications by Friday but There’s a Catch

According to sources familiar with the ongoing ETF proceedings, an approval could be as imminent as Friday, with trading beginning as early as next Monday. This was first revealed in a FOX Business report and was shared in an X post by ETF Store president Nate Geraci.

However, despite the positive signals and even the confidence levels of most analysts, it should be noted that the onus remains with the SEC. That is, the regulator could yet deny the applications if not satisfied.

Sharing in the above sentiment is Singapore-based crypto platform Matrixport, which also recently published results from its research. Matrixport submitted that it expects the SEC to reject all spot Bitcoin ETF applications. The firm cited that its submission considered that the agency’s five-member commission has a Democrat majority. More so, SEC Chair Gary Gensler is notorious for his apprehensive stance toward crypto.

What an Approval Means

For ETF enthusiasts, an approval would mean that retail investors may now have better exposure to the world’s largest cryptocurrency at a lower price than the already approved Bitcoin futures ETF. Additionally, the involvement of highly reputed money management firms such as BlackRock and Fidelity open up access to cryptocurrency to a wider range of investors. Ultimately, a spot ETF approval is expected to drive up the price of Bitcoin even further.

As seen towards the end of 2023 when the SEC began meeting key players, BTC price geared up, eventually surpassing the $45,000 mark on New Year’s Day. While that was nearly its highest level in almost two years, it has since retraced a little as some might be starting to get cold feet that the approval might not even happen.

Funds & ETFs, Market News, News
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