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Analyst Explains Why a US Spot Bitcoin ETF Could Be Approved This Week

2 mins
Updated by Ali M.
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In Brief

  • The crypto market eagerly anticipates the SEC's potential approval of a Bitcoin ETF, a move that could majorly transform the industry.
  • Grayscale Investments CEO Michael Sonnenshein hints at this significant development, with analysts suggesting imminent SEC action.
  • Bitcoin's price stability around $37,000 reflects the market's optimism for the ETF approval, with a decision expected by November 17.
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The cryptocurrency market is excited about the potential approval of a Spot Bitcoin ETF (exchange-traded fund) by the US Securities and Exchange Commission (SEC).

This is a development that could significantly transform the industry. Experts and investors closely monitor signals from the SEC, as recent market analyses hint at an approval being closer than ever.

US Spot Bitcoin ETF Approval Nears

Grayscale Investments CEO Michael Sonnenshein recently sparked intrigue, hinting at a major upcoming development in the crypto market. Many widely interpreted his words as signaling the anticipated approval of a Bitcoin ETF.

The approval of such an ETF would mark a watershed moment for Bitcoin. Therefore enhancing its mainstream appeal and accessibility to a broader range of investors.

“It’s been a ten-year dress rehearsal. We’re ready for the main event,” Sonnenshein said.

Interestingly, Nate Geraci, President of ETF Store, fueled the rising speculation. Citing Bloomberg’s James Seyffart, Geraci suggested that this week could see the SEC issue crucial 19b-4 approval orders. This move would be significant, laying the groundwork for listing Bitcoin ETFs in the US.

Read more: How To Prepare for a Bitcoin ETF: A Step-by-Step Approach

Seyffart’s analysis indicates that while the SEC might approve ETFs under the 19b-4 process soon, actual listings could be delayed due to additional approval processes.

“If we are indeed going to see Bitcoin ETF approvals for this wave, I think it’s more likely to happen closer to January than this current window. As I’ve been saying and Nate said in his tweet: We *could* see approval under that 19b-4 process and then not see a Bitcoin ETF actually list for days, weeks, or even months after said approval,” Seyffart said.

The potential for Bitcoin ETFs in the US comes amid a surge in digital asset investments. CoinShares reported significant inflows into digital asset products, with Bitcoin funds leading the charge.

Bitcoin’s price performance reflects the optimism surrounding the potential exchange-traded fund approval. It has consolidated around $37,000 after an impressive upswing toward $38,000.

Bitcoin Price Performance
Bitcoin Price Performance. Source: TradingView

The SEC’s decision is crucial as it would provide a regulated and structured way for investors to gain exposure to Bitcoin. This would legitimize Bitcoin as an investment asset and open doors for integrating cryptocurrencies into more traditional investment portfolios.

Read more: 7 Must-Have Cryptocurrencies for Your Portfolio Before the Next Bull Run

As the deadline of November 17 approaches, the crypto market is in suspense. Everyone is waiting to see if the SEC will indeed approve the Spot Bitcoin ETFs or delay the decision.

Top crypto platforms in the US | March 2024



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Bary Rahma
Bary Rahman, a talented journalist, graduated from New York University with a degree in Journalism. Skilled in SEO, she has worked with CNN, showcasing her investigative skills and storytelling abilities. In addition to her journalistic accomplishments, Bary has contributed her expertise as a content writer for Binance, crafting insightful articles on the dynamic crypto industry. Her unique fusion of journalism and SEO makes her a versatile and highly respected figure in the industry.