Excitement Grows as Decision Nears for Bitcoin ETF Approval

Countdown to Crypto Gold: Decrypting the Impending Bitcoin ETF Decision and Its Impact on Your Finances

Jan 8, 2024 - 02:14
Jan 8, 2024 - 02:14
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Excitement Grows as Decision Nears for Bitcoin ETF Approval
Excitement Grows as Decision Nears for Bitcoin ETF Approval

This week is crucial for getting the green light for Bitcoin exchange-traded funds (ETFs) in the United States. People who want to make Bitcoin ETFs have until Monday morning to make final changes to their applications. The U.S. Securities and Exchange Commission (SEC) plans to decide on at least one application by January 10, and there's a buzz that they might announce multiple decisions at the same time.

Before a Bitcoin ETF can start, two important things need to happen. First, the SEC has to say 'okay' to the filings by the exchanges that want to list the ETFs. Second, the regulator needs to approve the paperwork (S-1 forms) from the companies that want to create the ETFs, including big names like BlackRock and Fidelity.

Bloomberg News reports that the SEC is getting ready to vote on the exchanges' filings in the next few days. After that, the SEC may or may not decide on the companies' applications around the same time. If the SEC gives the thumbs up for both, the ETFs could start trading on the very next business day.

When asked about the status of the applications, the SEC didn't spill the beans and kept mum.

Why Does It Matter?

Bitcoin supporters believe that having ETFs linked to this top cryptocurrency would be a game-changer. There's a lot of money at stake, with both everyday people and big investors potentially pouring in billions.

"The market doesn't fully realize how big a deal a Bitcoin ETF approval could be," says Michael Anderson, co-founder of crypto venture firm Framework Ventures.

Even though the SEC, under both Democrat Gary Gensler and the past leader Jay Clayton, had concerns about protecting investors and possible market trickery, things might be changing. Speculation started in August when the SEC had a legal setback against Grayscale Investments, a company managing crypto assets. Now, many think the regulator might have to give in to the growing demand for Bitcoin ETFs.

Anticipation of approval from regulators fueled a big jump in Bitcoin prices last year – around 160%. But that wasn't enough to reach the highest prices in November 2021 when Bitcoin went close to $69,000. Right now, Bitcoin is hovering around $43,640, slightly down by 1.5% on Monday morning in London. This dip is part of a wider drop in crypto markets as the new workweek begins.

Also Read: Bitcoin ETF Countdown: Fees, Launch Dates, and Everything You Need to Know for This Potential Crypto

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