The US Securities and Exchange Commission (SEC) has delayed its decision on several spot Bitcoin ETF applications, sparking speculation about the regulator’s intentions. According to Bloomberg analysts, the SEC may be preparing to approve all the pending applications at once in early January.
Prob looking to get them out of the way, clear runway
— Eric Balchunas (@EricBalchunas) November 28, 2023
A spot Bitcoin ETF is a fund that tracks the price of Bitcoin and holds the actual cryptocurrency in custody. Unlike futures-based Bitcoin ETFs, which trade contracts that bet on the future price of Bitcoin, spot Bitcoin ETFs would allow investors to gain direct exposure to the underlying asset.
The SEC approved several futures-based Bitcoin ETFs in October but has not yet given the green light to any spot Bitcoin ETFs. The regulator has cited concerns about market manipulation, fraud, and investor protection as reasons for its caution.
Bloomberg Analysts Strongly Believe ETF Approval is Inmiment in the Coming Weeks
However, some Bloomberg analysts believe that the SEC may be planning to surprise the market by approving all the spot Bitcoin ETF applications at once. James Seyffart, a Bloomberg analyst, tweeted that the SEC’s early postponement of the decision date for Franklin Templeton’s spot Bitcoin ETF may indicate that the regulator wants to align the decision deadlines for all the applicants.
Seyffart also noted that Hashdex, another spot Bitcoin ETF applicant, received a similar postponement notice from the SEC. He argued that these delays could be a sign of a potential mass approval wave by January 10, 2024, the final decision date for most of the applications. Eric Balchunas, another Bloomberg analyst, agreed with Seyffart’s view.
He also commented that it would be unfair for Franklin Templeton to launch its spot Bitcoin ETF on the same day as other providers since it submitted its application months later than the others.
If the Bloomberg analysts’ predictions are correct, the SEC’s approval of spot Bitcoin ETFs would be a major milestone for the crypto industry. It would also likely boost the demand and price of Bitcoin, as more investors would have access to the leading cryptocurrency.
