SEC Considers Approving Bitcoin ETFs

Grayscale is among the applicants seeking to convert its GBTC trust product into a spot Bitcoin ETF, and discussions with the SEC are ongoing.

SEC Considers Approving Bitcoin ETFs
SEC Considers Approving Bitcoin ETFs

Within the next eight days, the United States Securities and Exchange Commission may approve all twelve pending spot Bitcoin exchange-traded fund (ETF) applications.

James Seyffart and Eric Balchunas, ETF analysts at Bloomberg, wrote that the SEC has a “window” beginning on November 9 to approve all 12 spot Bitcoin ETF filings in the days leading up to November 17, including Grayscale’s conversion of its GBTC trust product.

They emphasized that this was only a possibility. “The SEC simultaneously issued delay orders for BlackRock, Bitwise, VanEck, WisdomTree, Invesco, Fidelity, and Valkyrie,” Seyffart wrote on X (formerly Twitter) on November 8.

The reason for this brief window is that the SEC designated November 8 as the final day of the comment period when it extended the deadline for several pending spot Bitcoin ETF filings.

“If the agency wants to allow all 12 filers to launch — as we believe — this is the first available window since Grayscale’s court victory was affirmed.”

The comment period for three filings, including Hashdex Bitcoin ETF, Franklin Bitcoin ETF, and Global X Bitcoin Trust, would recommence on November 17, indicating that their approval or denial would not occur until after November 23 at the latest.

SEC Considers Approving Bitcoin ETFs

Nine of the pending spot Bitcoin ETF applications could technically be approved anytime before Jan. 10. Source: James Seyffart

Although the deadline to submit all twelve applications is November 17, Seyffart noted that, in theory, the SEC could render a decision on nine of the twelve submissions before January 10.

Although there is no assurance that a spot Bitcoin ETF will be approved, Seyffart and Balchunas both estimate that there is a 90% possibility that an approval will occur before January 10th, 2020.

Grayscale, a crypto asset manager, reportedly initiated discussions with the SEC regarding its application to convert its trust product GBTC into a spot Bitcoin ETF, as reported by CoinDesk on November 9.

Market analysts are anxiously awaiting the regulator’s decision.

Since its victory over the regulator in court on August 29, Grayscale has reportedly maintained communication with the SEC’s Division of Corporation Finance and the Division of Trading and Markets, according to sources with knowledge of the situation.

The cryptocurrency market has become more optimistic in recent months, as the perceived likelihood of a Bitcoin ETF being approved has increased, the price of Bitcoin has risen by more than 30% in that time.

The enormous ascent of Bitcoin has also stimulated price movements in other significant assets.

Solana (SOL) increased by an astounding 93% over the previous month due to scaling enhancements, whereas Ripple (XRP) and Ether (ETH) increased by 36% and 20%, respectively.

While many in the industry are certain that approval will catalyze the next bull market, other analysts are not as convinced of the rally’s durability.