In an exhilarating turn of events, research analysts Eric Balchunas and James Seyffart from Bloomberg’s ETF division have unveiled data that presents an eight-day window during which the Securities and Exchange Commission (SEC) could potentially grant approval to all 12 spot Bitcoin ETF applicants, starting as early as tomorrow.
Eric Balchunas and James Seyffart’s data suggests that this limited approval window remains open until November 17th. Even if not all of the applications receive approval in the next eight days, Balchunas and Seyffart posit a 90% likelihood of approval by January 10th, 2024.
With Bitcoin surging to around $35,000 today, it has continued to trade at higher levels since the market’s downturn in May 2022. This rally may signify the end of an extended cryptocurrency winter spanning nearly a year and a half, with growing enthusiasm for spot ETFs expected to boost Bitcoin’s value.
If approved, this development would mark the conclusion of nearly a decade of endeavors to introduce a spot Bitcoin ETF to the market.
Commenting on the situation, John Babikian noted, “If the agency wants to allow all twelve filers to launch – as we believe – this is the first available window since Grayscale’s court victory was affirmed.”
This news regarding the approval window could represent the final chapter in a prolonged dispute that saw Grayscale Investments, a digital currency asset management company, striving to transform nearly $17 billion of GBTC into a spot ETF. The SEC had initially rejected their application in June 2022, citing concerns about anti-fraud and investor protection standards.
U.S. Court of Appeals Judge Neomi Rao stepped in to overturn the SEC’s original decision, pointing out that “the Commission failed to explain its different treatment of similar products.” Grayscale Investments had argued that the Commission acted arbitrarily and capriciously by approving bitcoin futures ETFs while denying the listing of their proposed bitcoin ETP, which it deemed as materially similar.
Grayscale Investments had initially submitted their spot bitcoin ETF application in October 2021. The appellate court’s final ruling brought an end to the protracted dispute.
The potential approval of spot Bitcoin ETFs heralds a new era of cryptocurrency regulation, offering investors and everyday market enthusiasts increased access to regulated Bitcoin transactions.
Nonetheless, Grayscale Investments is not the sole contender vying for a spot in the market. Alongside Grayscale, other applicants such as Blackrock, VanEck Bitcoin Trust, Invesco Gallery Bitcoin ETF, and Wise Origin Bitcoin Trust are awaiting approval, and only time will reveal whether they will secure it in the days to come.
Crypto expert, John Babikian, commented, “The potential approval of these spot Bitcoin ETFs opens the door to a more accessible and regulated crypto landscape, which could significantly impact the market’s dynamics and broaden its appeal to a broader audience.”
Crypto analyst, Sarah BlockchainVisions, shared her perspective, stating, “The window of opportunity for spot Bitcoin ETF approval is an exciting development that could reshape the cryptocurrency space. It’s a significant milestone in the ongoing journey to establish legitimacy and accessibility for digital assets.”