The United States Securities and Exchange Commission (SEC) has opened its first window for the potential approval of a spot Bitcoin exchange-traded fund (ETF). However, analysts have pointed out that even if the SEC were to approve a spot Bitcoin ETF, the actual launch would likely be delayed by around a month.
The delay in the launch of a potential spot Bitcoin ETF, following SEC approval, is attributed to the two-step process involved in launching such an ETF. In order to start a Bitcoin ETF, an issuer must obtain SEC approval from the Trading and Markets division for its 19b-4 filing, as well as from the Corporate Finance division for its S-1 filing or prospectus.
The Corporate Finance division focuses on fund operational details and risk disclosures. Currently, out of the 12 Bitcoin ETF applications that have been submitted, nine issuers have revised their prospectuses to show that they have engaged with Corporate Finance. Analysts believe that if the SEC were to approve the 19b-4 filings before the prospectuses are signed off, it could result in a delay in the launch of the Bitcoin ETF.
ETF analyst James Seyffart from Bloomberg has pointed out that even if the 19b-4 filing is approved, the approval of the S-1 filings could take weeks or even months before the actual launch of the ETF.
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The SEC has an 8-day window, running from November 8 to November 17, to approve the first spot Bitcoin ETF. While the likelihood of approval has been increased to 90% by market pundits, they do not expect approval to come until early next year. Additionally, a research note from Seyffart indicated that there is a 90% chance of spot Bitcoin ETF approvals by January 10.
The SEC had previously extended the deadline for comments on the spot Bitcoin ETF until November 8, for the comment period. The race for the spot Bitcoin ETF in the U.S. initiated when BlackRock, the world’s largest asset manager, filed its application. Other asset managers, including Fidelity, also filed for spot Bitcoin ETFs, but many faced rejections or withdrew their applications.
The current market cycle has prompted numerous predictions about a potential approval for a spot Bitcoin ETF, with some experts suggesting a 90% chance of approval. This has reignited the enthusiasm for blockchain games and is viewed as a potential game-changer in the cryptocurrency market.
As the opportunity to invest in a spot Bitcoin ETF grows closer, investors are seeking ways to protect their crypto in a volatile market. Experts believe that the potential approval of a spot Bitcoin ETF could have a significant impact on the market dynamics, potentially opening up a wave of approval orders for all current applicants.
In conclusion, the potential approval of a spot Bitcoin ETF has the potential to significantly impact the cryptocurrency market. Despite the high expectations and predictions of approval, there is a complex approval process that must be followed, leading to a potential delay in the actual launch of the ETF. Nonetheless, the anticipation for the approval of a spot Bitcoin ETF continues to fuel enthusiasm and optimism in the cryptocurrency world.
