The US Securities and Exchange Commission may approve a spot Bitcoin ETF, according to recent speculations that rocked the digital asset market. Due to these conjectures, Bitcoin surged to over 6% on the second day of 2024, breaking beyond $45,000 for the first time since early April 2022.
The excitement surrounding the ETF clearance suggested that Bitcoin will soon be institutionally and widely accepted, which in turn spurred a spike in traders’ and investors’ buying attitude.
Predictions that the SEC will approve the introduction of many spot bitcoin ETFs seem to be driving the increase, as they have been doing for the last few weeks.
SEC Decision On Bitcoin ETF Approvals Uncertain
According to a Reuters story published over the weekend, the regulatory body might start informing ETF sponsors that their applications would be accepted as early as Tuesday, January 2.
Eleanor Terrett of FOX Business provided commentary on the state of affairs through X, formerly known as Twitter. She emphasized the erratic character of the SEC’s decision-making procedure.
“While the SEC is undoubtedly unexpected, it would surprise me if approvals were to materialize tomorrow,” she said.
While the @SECGov is surely unpredictable, it would surprise me if approvals were to happen tomorrow.
From what I understand through conversations I’ve had with issuers, the SEC still has to review all the changes made to the S-1s filed on Thursday/Friday AND make comments on… https://t.co/CnkYdXsbD4
— Eleanor Terrett (@EleanorTerrett) January 1, 2024
Terrett stated that the SEC must evaluate and comment on the changes made to the S-1s that were filed on Thursday and Friday, according to her conversations with issuers. Cryptocurrency analyst Scott Melker had speculated about an approval later today, to which this comment was a response.
Terrett said that following this phase of review, the SEC may notify the issuer of the final submission date of the S-1 form, and that notification may take effect within the next 24 to 48 hours.
BTC market cap currently at $897.742 billion. Chart: TradingView.com
Yesterday, Melker, among others, disseminated the notion that the SEC would approve the first Bitcoin ETF in the US as early as January 2. He wrote:
“ETF approval tomorrow?,” on X. That’s the rumor.
ETF approval tomorrow? That’s the rumor…
— The Wolf Of All Streets (@scottmelker) January 1, 2024
In reaction to Melker’s conjecture, Terrett emphasized the short timescale, taking into account the SEC staff’s recent vacation, and drew comparisons with the Ethereum futures approval procedure in October of last year.
SEC Staff Leave Casts Doubt On Bitcoin ETF Approval Timing
Even a confirmation on Tuesday or Wednesday, according to Terrett, appears improbable given that SEC staff members have been on leave since Friday. She nevertheless continued to have a positive attitude, saying:
“But we’ll see! Whatever happens, the next two weeks will be exciting for crypto.”
Adding to the discussion, FOX Business journalist Charles Gasparino disclosed via X: “Breaking re Bitcoin ETF: People at BlackRock say it’s radio silence from SEC; Terrett’s sources say the amount of paperwork the SEC still needs to go through make the announcement likely toward week’s end.”
This statement alludes to a possible delay in the release and highlights the amount of work the SEC is now managing.
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