The crypto world is on the edge as the United States Securities and Exchange Commission (SEC) approaches a pivotal moment that could mark a historic shift in cryptocurrency. Investors, enthusiasts, and industry experts are closely watching for the SEC’s decision to approve a spot Bitcoin Exchange-Traded Fund (ETF), expected to be made by Wednesday, January 10. Bloomberg analysts James Seyffart and Eric Balchunas have projected a 90% chance of the SEC giving the green light to this groundbreaking development. This decision, if realized, underscores the SEC’s progressive stance under the leadership of Chairman Gary Gensler.
Nate Geraci, President of the ETF Store and co-founder of the ETF Institute, has outlined five critical factors that are shaping the Bitcoin ETF landscape. These include fee disclosures, the SEC’s approval vote, potential launch date, Grayscale’s role, and marketing strategies. Notably, Fidelity is first among the group with a competitive charge of 0.39%, closely followed by Invesco at 0.59%. There are also reports that ARK may invest more than $200 million and BlackRock may contribute $2 billion.
Scott Johnsson, a finance lawyer at Davis Polk, has outlined his predictions for the timeline and approval probabilities. According to his estimates, the final S-1/3 filings will be completed on Monday, 19b-4 approval orders will be issued post-close on Wednesday, Thursday will see requests for acceleration from issuers, Friday will mark the notice of effectiveness filed by the SEC, and trading will commence the following Tuesday. Johnsson assigns increasing probabilities of approval at each stage, culminating in a 100% chance of trading approval.
This week holds immense significance for Bitcoin ETFs in the United States. The SEC’s decisions on 19b-4 filings and S-1 forms represent the final hurdles that could propel Bitcoin’s integration into mainstream financial markets. Beyond the regulatory developments, market dynamics continue to influence Bitcoin’s price. The cryptocurrency is in an uptrend that started in September 2023, with higher highs and higher lows. The $45,000 level holds psychological significance for Bitcoin holders. Recent on-chain data indicates substantial buying activity around this level.
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| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | positive |
| Relevance Score | 1 |
| People | Eric Balchunas, Gary Gensler, Scott Johnsson, Nate Geraci, James Seyffart |
| Companies | BlackRock, Bitwise, Crypto News Flash, United States Securities and Exchange Commission, ARK, Grayscale, Davis Polk, Invesco, ETF Institute, Hashdex, Fidelity, The ETF Store, VanEck |
| Currencies | Bitcoin |
| Securities | None |
