January 5, 2024 at 12:10 GMTModified date: January 5, 2024 at 12:10 GMT
January 5, 2024 at 12:10 GMT

Bitcoin spot ETFs on the verge following new developments

New developments have made the cryptocurrency market abuzz with the possibility of the US SEC approving several spot Bitcoin ETFs.

Bitcoin spot ETFs on the verge following new developments

The suspense and anticipation around a spot Bitcoin exchange-traded fund (ETF) approval in the US has held the cryptocurrency market in close grips.

Financial experts and analysts have been optimistic, with many expecting the Securities and Exchange Commission (SEC) to greenlight a few applications by the second week of January.

Over the last few days, the industry has seen a number of positive developments to support the same.

SEC meets with major stock exchanges

With over 14 spot Bitcoin ETF applications on its desk, the SEC seems to be inching closer towards reaching a decision. 

As per recent reports, the regulator has held a series of meetings with exchanges that are expected to help launch the applicants’ investment products. 

This included major stock exchanges like New York Stock Exchange (NYSE), Nasdaq, and Chicago Board Options Exchange (CBOE). 

The meetings were potentially to deliberate upon revising and finalising the 19b-4 filings submitted by the spot Bitcoin ETF applicants. 

While the outcome of these meetings remains uncertain, the industry views this as a bullish sign, indicating potential approvals for some, if not all, of the applications.

Grayscale and VanEck submit crucial filings

Grayscale Bitcoin Trust (GBTC) and VanEck have made crucial filings, marking a significant step towards achieving approval for their respective ETFs. These updated requests to the SEC are most likely to be the final version which would be judged by the regulator itself. 

A Form 8-A registration was filed by the GBTC on Thursday, following a similar move taken by Fidelity a day before. Additionally, VanEck Bitcoin Trust has also registered its securities with the SEC.

According to financial experts, these filings, particularly the Form 8-A one, is a crucial step for trading on an exchange. Bloomberg analyst James Seyffart added on to the optimism for ETF approvals saying:

Bitcoin rebounds after a break

Influenced by this bullishness, Bitcoin’s price has shown resilience following a recent slump. After dropping below $42,000, it has rebounded, surpassing the $44,000 mark today. 

This recovery aligns with the growing anticipation of the SEC’s decision on spot Bitcoin ETFs. Most altcoins have also rebounded, with Ethereum soaring past $2,250 and Solana reclaiming the $100 mark. 

The total crypto market cap has recovered significantly as well, indicating a positive market response to the potential ETF approvals. However, analysts cautioned that the actual approval could trigger a “sell the news” effect, potentially impacting Bitcoin’s price in the short term. 

In the long term, the approval of Bitcoin spot ETFs could attract significant capital to the crypto markets, potentially leading to a substantial impact on Bitcoin’s price.

At the time of press, $BTC was changing hands for $44,162, up by almost 3% daily as it traded green on its charts.