The long-awaited approval of a Bitcoin Exchange-Traded Fund (ETF) in the United States appears to be on the horizon, marking a significant milestone in the cryptocurrency industry.
After months of regulatory anticipation and delays from the Securities and Exchange Commission (SEC), key players in the race for a Bitcoin Spot ETF, including BlackRock, Grayscale, and 21Shares, have recently submitted crucial 19b-4 amendments in response to the SEC’s request. This development signals a pivotal stage in the approval process, suggesting that the regulator may have unofficially approved their proposals.
The final steps in the approval process
The 19b-4 filing represents one of the final steps in the SEC’s approval process for a Bitcoin ETF. Following this, asset managers will complete their S-1 documents, paving the way for US exchanges like NASDAQ to list shares of investment securities linked to Bitcoin.
According to senior Bloomberg analyst Eric Balchunas, the asset managers are expected to submit their final S-1 documents by 8 am on Monday, after which the SEC will carefully review them before announcing its decision next week.
If everything proceeds as planned, the Bitcoin ETF could begin trading as early as the following Thursday. Market experts anticipate that at least 11 proposals may be approved.
Despite the positive news surrounding the potential approval of a Bitcoin ETF, the cryptocurrency market has shown limited excitement. Bitcoin, in particular, has struggled to recover from recent declines and remains below the $44,000 mark.
Other cryptocurrencies like Solana and Ethereum have also experienced similar trends, reflecting a cautious sentiment among investors.
Bitcoin is trading at around $44,000, with a trading volume exceeding $16 billion. The subdued reaction in the market may be attributed to low open interest in perpetual futures contracts, indicating a reluctance among investors to open new long positions following last month’s rally.
Uncertainty looms despite positive developments
While the prospect of a Bitcoin Spot ETF approval is undoubtedly a significant development for the cryptocurrency industry, some analysts remain cautious amid prevailing optimism. They warn that market dynamics could turn the highly anticipated announcement into a ‘sell-the-news’ event, leading to market volatility.
The Bitcoin Spot ETF represents a major leap forward for the industry, as it can potentially bring substantial traditional financial exposure to Bitcoin. However, uncertainty surrounding the SEC’s decision has created anxiety among market participants, with concerns that the regulator may introduce further delays.
