The SEC is preparing to issue a long-awaited ruling on Bitcoin spot ETF applications this week. Approval seems very close, but is still pending. If given a green light, ETFs could begin trading as early as the next business day.
Trading of Bitcoin Spot ETFs will begin promptly after approval
The battle to launch the first Bitcoin Spot ETF has been going on for years. Around ten players are in the running to market these exchange-traded index funds backed by Bitcoin. Faced with this influx of requests, the Securities and Exchange Commission (SEC) has so far refused after refusal, citing risks for investors.
But the tide could turn this week. After losing a lawsuit brought by Grayscale in August, the American stock market watchdog appears ready to approve such products. Part of the crypto ecosystem is therefore holding its breath waiting for an imminent decision.
If spot Bitcoin ETFs do indeed see the light of day, they could technically launch as soon as the trading day following approval. This was confirmed Bloomberg today, establishing the necessary steps for their deployment.
The SEC must first validate two types of documents: forms 19b-4 filed by stock exchanges to list funds, as well as S-1 prospectuses from issuers like Fidelity detailing the operational terms.
The stock exchanges fulfilled their part by submitting the 19b-4 last week. The ball is now in the SEC’s court. Once these validations have been acquired, nothing would stand in the way of the immediate availability of Bitcoin ETFs for cash on the markets.
The establishment of a precise date, however hypothetical, has rekindled the enthusiasm and impatience of investors. The Grail seems within reach. All that’s missing is the final blessing from the SEC, which keeps the suspense going.
D-day known, the SEC still silent!
For the moment, this decisive approval from the American stock market authorities is still desired. The SEC must make its decision on a dozen cash ETF cases before January 10. But his deafening silence is starting to annoy players in the sector, who were speculating about an announcement this week.
Some observers believe that the institution is deliberately taking its time, seeking to gain time before having to make a decision. However, the stock exchanges and candidate financial companies are not losing hope. All have resubmitted their regulatory forms, awaiting an upcoming green light.
The approval of spot Bitcoin ETFs is seen as a major catalyst for crypto. It would attract billions of dollars of institutional investment, boosting adoption and credibility. Hence the feverish impatience of the market as the deadline approaches.
A potential launch date is therefore established for future spot Bitcoin ETFs: the day following their regulatory approval. But this is still a long wait, with the SEC leaving the suspense hanging until the last moment. The historical stakes surrounding these financial products have never been so strong.
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