Key Takeaways:
- SEC May Delay ETF Decision as Their Workload Piles Up
- BlackRock has not received any communication from the US regulator.
As the January 10 deadline for the potential approval of spot Bitcoin (BTC) ETFs looms, the Securities and Exchange Commission (SEC) finds itself inundated with a significant volume of paperwork. Despite a surge in the Bitcoin price indicating optimism among market participants, the likelihood of approval by the end of today appears slim.
Eleanor Terrett, a FOX Business journalist, provided insights into the situation via X (formerly Twitter), emphasizing the unpredictable nature of the SEC’s decision-making process. Terrett expressed skepticism, stating, “While the SEC is surely unpredictable, it would surprise me if approvals were to happen tomorrow.”
This crucial step precedes issuers’ notification regarding the final date for their Form S-1 filings, mirroring the timeline observed with Ethereum (ETH) futures ETFs in the previous year.
The SEC’s review process is known for its thoroughness, ensuring all regulatory requirements are met before granting approval.
Terrett noted that a recent break for SEC staff could indicate a tighter schedule for approval, potentially within the next 24 to 48 hours. However, the outcome remains uncertain, and the next two weeks are anticipated to be pivotal in shaping the future of Bitcoin ETFs.
With over ten Bitcoin ETF applications, including submissions from industry giants like Fidelity and Invesco, the SEC’s decision carries far-reaching implications. Approval could significantly impact individual investors and set a precedent for future financial products related to cryptocurrencies.
Recently, major asset management firms, including Fidelity, BlackRock, and VanEck, submitted amended forms to the SEC for proposed spot Bitcoin ETFs, marking a significant moment in the industry’s quest for approval.
If the SEC manages to approve ETF proposals from notable firms like BlackRock, Fidelity, Invesco, Bitwise, and VanEck by January 5, they would slightly surpass the expected schedule. Bloomberg ETF analysts Eric Balchunas and James Seyffart previously predicted that a batch of spot Bitcoin ETFs would likely be approved closer to the end of the deadline.
“We are definitely expecting it by January 10. Still, I think the official date is more likely January 8th – 10th,” Seyffart recently commented, adding to the anticipation surrounding the SEC’s decision on Bitcoin ETFs.
