Trusted

One Week Before Potential Spot Bitcoin ETF Approval: Everything You Need to Know

3 mins
Updated by David Thomas
Join our Trading Community on Telegram

In Brief

  • Grayscale and Fidelity file an 8A securities registration form with the SEC, ahead of a decision on a Bitcoin ETF, set for Jan. 8-10, 2023.
  • Bloomberg analyst James Seyffart predicts most ETF applicants will be ready to launch their ETFs within days of approval, instead of weeks.
  • Grayscale's efforts attract attention due to its first-mover status in bringing Bitcoin to institutional investors through a Bitcoin Trust.
  • promo

Sources inside the US Securities and Exchange Commission (SEC) claim the agency could start notifying spot Bitcoin exchange-traded fund (ETF) applicants of approvals by Friday. Grayscale Investments and Fidelity Investments created excitement by filing an 8A securities registration form today.

Bloomberg analyst James Seyffart predicts that most successful applicants will be operationally ready to launch their ETFs within days rather than weeks, as previously thought. The approval dates are set from Jan. 8 – Jan. 10, 2023, almost ten years after the first attempt.

Grayscale SEC Filing Stokes Bitcoin Spot ETF Hype

The excitement around the approvals comes amid a flurry of filings discussing authorized partners and securities registration. Seyffart’s colleague, Eric Balchunas, predicted that companies would rush to name authorized partners in the lead-up to the approval deadline.

Seyffart says the 8A form filed by Grayscale and Fidelity is part of the process of listing an ETF and is not itself a sign of approval. It is a filing that depends on the effectiveness of the applicant’s S-1 filing. The S-1 filing is, in turn, dependent on the SEC approving a 19b-4 form.

However, efforts by Grayscale have received attention because of the company’s first-mover advantage in bringing Bitcoin to institutional investors through its Bitcoin Trust. Grayscale fought hard to overturn the SEC’s refusal to allow the conversion of the Trust into a spot Bitcoin ETF.

Its CEO, Michael Sonnenshein, supports the approval of multiple ETFs at once despite Grayscale being a pioneer in the space. He said that any approved and operationally ready applicant should be allowed to enter the market as soon as possible.

“I think that the SEC should and does, in fact, want to create an even playing field. We’ve publicly been advocates of the fact that when the commission is ready to give the requisite approvals for spot products to come to market, that it should be done all at once.”

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

Industry Reflects on Impact of Bitcoin Spot ETFs

The encroaching deadline has elicited a variety of responses from market players. If the SEC doesn’t approve spot Bitcoin ETF applications, ETF investment adviser Nate Geraci thinks lawsuits could follow

When asked about his views on whether the Bitcoin futures market is threatened by a spot ETF, Simeon Hyman of ProShares insists that the futures market is more well-regulated and is not threatened. Crypto investment provider Matrixport may have caused a major Bitcoin selloff yesterday after releasing a report downplaying the chances of an ETF approval on political grounds.

Read more: Where To Trade Bitcoin Futures: A Comprehensive Guide

Brian Kelly, the Founder & CEO of BKCM LLC, a digital asset investment firm, said a selloff after ETF excitement reaches a fever pitch is inevitable. Speaking on CNBC this week, Kelly said,

“I do think a lot of the speculative fever around the ETF is probably reaching a crescendo this week. So, yeah, could we get a selloff. But I think that would be…a dip to buy, because remember, there are still a lot of people that have not been able to buy bitcoin for their portfolio.”

Do you have something to say about the latest developments regarding spot Bitcoin ETF approvals or anything else? Please write to us or join the discussion on our Telegram channel. You can also catch us on TikTokFacebook, or X (Twitter).

Top crypto projects in the US | October 2024
Coinbase Coinbase Explore
Coinrule Coinrule Explore
3Commas 3Commas Explore
Uphold Uphold Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | October 2024
Coinbase Coinbase Explore
Coinrule Coinrule Explore
3Commas 3Commas Explore
Uphold Uphold Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | October 2024

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

David-Thomas.jpg
David Thomas
David Thomas graduated from the University of Kwa-Zulu Natal in Durban, South Africa, with an Honors degree in electronic engineering. He worked as an engineer for eight years, developing software for industrial processes at South African automation specialist Autotronix (Pty) Ltd., mining control systems for AngloGold Ashanti, and consumer products at Inhep Digital Security, a domestic security company wholly owned by Swedish conglomerate Assa Abloy. He has experience writing software in C...
READ FULL BIO
Sponsored
Sponsored