November 9, 2023

SEC Considers Approval for 12 Bitcoin ETFs Within a Limited Timeframe Starting Today

Industry experts anticipate the regulators to potentially greenlight spot trading between November 8 and November 17.

From today, a brief window opens wherein the Securities and Exchange Commission could greenlight 12 pending bitcoin ETF applications.

These approvals might encompass the BlackRock iShares Bitcoin Spot ETF and the transformation of the Grayscale Bitcoin Trust, as per insights from Bloomberg analysts James Seyffart and Eric Balchunas.

Their reasoning hinges on the SEC setting the deadline extension for pending ETF applications with November 8 as the final day for rebuttal comments. There's a possibility that the SEC could approve several applications between now and November 17, potentially requiring all the funds to commence trading simultaneously.

Seyffart highlighted on X:

"Delay orders were issued by the SEC for BlackRock, Bitwise, VanEck, WisdomTree, Invesco, Fidelity & Valkyrie at the same time. If the agency wants to allow all 12 filers to launch — as we believe — this is the first available window since Grayscale's court victory was affirmed."

A bitcoin exchange-traded fund (ETF) could provide investors with exposure to the leading cryptocurrency without needing to possess the asset themselves. Instead, they could purchase shares backed by bitcoin acquired by the issuer.

Seyffart cautioned that even if the SEC approves a rule change for ETF trading, this is separate from approving a fund's registration statement. Both filings would necessitate approval before any pending bitcoin ETFs could start trading.

Despite potential delays in bitcoin ETF trading, the recent price surge demonstrates investors' optimism. In October, BTC surged over 20%, fueled by hopes for the long-anticipated approval of a spot bitcoin ETF.

Yesterday, a source familiar with Grayscale's attempts to convert GBTC to a bitcoin ETF informed Coindesk of ongoing discussions with the SEC regarding their application.

However, the significance of a potential Bitcoin Spot ETF exceeds merely spiking the BTC price.

Analysts project that a spot bitcoin ETF could attract $50 billion to $100 billion in inflows over the next five years, potentially causing a notable shift in the asset's market dynamics. This development could have mixed implications for Bitcoin enthusiasts, with some expressing contentment at the prospect of Wall Street giants not hoarding substantial amounts of their preferred asset.

In the last six weeks alone, crypto funds have garnered deposits worth $767 million, according to crypto asset manager CoinShares.

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