The U.S. Securities and Exchange Commission (SEC) faces a crucial deadline this week. By November 17, the SEC must decide on approving several spot Bitcoin Exchange-Traded Funds (ETFs), a decision keenly anticipated by investors and industry experts. Nate Geraci, President of the ETF Store and host of the ETF Prime podcast, recently shed light on this significant moment, citing insights from Bloomberg analyst James Seyffart.
According to Seyffart, the SEC will likely approve spot Bitcoin ETFs in batches rather than individually to avoid showing preference in the highly competitive market. This approach aligns with the SEC’s preference for impartiality in a sector marked by intense competition. Geraci highlighted the distinction between the 19b-4 approval orders and the approval of each issuer’s registration statement. While both are necessary for ETFs to list and trade, the latter is critical for launching these funds.
The spotlight is on filings from Hashdex, Franklin Templeton, and Global X, set to enter a public comment period beginning November 17. This timing separates them from the current batch of applications, likely delaying their approval until early January, as per Geraci’s analysis.
Additionally, a potential government shutdown later this week adds another complexity to the decision-making process. This factor, as mentioned by Geraci, could influence the timeline for the approval of these ETFs.
Alessandro Ottaviani, a Bitcoin expert, provided further context, noting that the SEC’s decision on a batch of 12 applications could occur within an eight-day window from November 11 to November 17. This period is crucial as it precedes the public comment period for the later filings.
Moreover, the upcoming January 10, 2024, deadline is another significant date for these filings. It marks the extension deadline for the SEC’s decision on Ark Invest’s spot Bitcoin ETF application. However, the SEC still has the opportunity to approve the remaining nine ETF submissions before this deadline, adhering to its objective of not playing kingmaker.
This week represents a pivotal moment for the cryptocurrency market, particularly for investors and firms involved in the spot Bitcoin ETF space. The SEC’s decisions will not only impact the immediate future of these ETFs but also set a precedent for how such financial instruments are handled in the U.S. market. As the deadline approaches, all eyes remain on the SEC, awaiting its course of action in a landscape where regulatory decisions hold significant sway.
