The US Securities and Exchange Commission (SEC) has run out of time to delay the spot Bitcoin exchange-traded funds (ETFs) and will be passing its judgment very soon.
SEC To Decide Next Week
The anticipation surrounding a potential spot Bitcoin ETF approval in the U.S. has ignited a global Bitcoin rally, with the crypto community closely monitoring developments. Industry experts suggest that the SEC is feeling the heat and is poised to decide on the applications next week.
The SEC faces a critical deadline on January 10, by which it must make a final decision on the ETF applications. Industry analyst James Seyffart suggests a collective approval for all applications except Grayscale, citing its unique nature requiring additional time for conversion.
“90% Chance Of Approval”
Seyffart asserts a 90% likelihood of a positive SEC decision. He attributes this optimism to substantial interactions between the SEC and asset managers. The legal setback suffered by the SEC in August against Grayscale, concerning the conversion of its Grayscale Bitcoin Trust (GBTC) into a listed BTC ETF, is seen as an additional factor favoring approval.
According to Seyffart, the SEC is running out of options. If it chooses to deny, the regulatory body must either provide new grounds or persuade firms to withdraw their applications—both scenarios deemed unlikely. An unexpected denial, in his view, is a remote possibility.
Impact on Investors and Market
The decision holds the potential to offer a more regulated and accessible route for investors to engage with Bitcoin, potentially boosting the cryptocurrency's mainstream acceptance. However, Seyffart points out that institutional investors, known for their cautious approach, might adopt the Bitcoin ETF gradually, conducting thorough due diligence before incorporating new assets into their portfolios.
Should the SEC approve the Bitcoin ETF, Seyffart forecasts an influx of approximately $10 billion into Bitcoin ETFs within the first year. He cautions, however, that the initial inflows are unlikely to surpass $100 billion, drawing parallels with the total value of gold ETFs in the U.S. This projection emphasizes the potential growth for Bitcoin ETFs while acknowledging the limits of immediate market expansion.
All Eyes On SEC
As the January 10 deadline approaches, the cryptocurrency market is on high alert, awaiting the SEC's decision that could open a new chapter in the history of cryptocurrency investment. The potential approval of a Bitcoin ETF has generated substantial interest among retail and institutional investors. The outcome will not only impact the immediate market but also shape the trajectory of Bitcoin's integration into mainstream investment portfolios.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
