Will the SEC Approve a Spot Bitcoin ETF Today? Speculations Arise

By akohad Jan5,2024

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The crypto community is abuzz with speculation over the imminent approval of multiple spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) as soon as Friday.

Tweets and hints from key figures in the industry, including one from TechCrunch reporter Jacquelyn Melinek, have fueled this speculation.

Crypto Community Buzzing with Speculation of Approval

Melinek, a seasoned reporter at TechCrunch, took to X on Jan. 4 to share insights from sources “extremely close to the matter.”

According to her tweet, there is an expectation that the SEC will approve multiple firms’ applications for a spot Bitcoin ETF, possibly within the next day.

This post, alongside a cryptic message from Grayscale’s chief legal officer, which stated, “just filling out some forms,” has been widely interpreted as a hint towards the impending approval of their ETF application.

The potential approval has also prompted a trending hashtag, #BTCETF, on Twitter, where supporters and skeptics are voicing their opinions with the search ‘Bitcoin ETFs’ also trending.

Bitcoin’s price reflects this excitement, showing an uptick of 3.4% in the last 24 hours, according to CoinGecko data, rebounding from its Jan. 3 slump.

Analysts Remain Skeptical

However, only some are convinced that the green light is imminent. Bloomberg ETF analyst James Seyffart and attorney Joe Carlasare have both expressed skepticism.

Seyffart describes the current buzz as “noise,” predicting that any potential approvals are more likely to occur between Jan. 8 and Jan. 10.

Carlasare points out that the public comment period for several ETF applications closes at midnight on Jan. 5, casting doubt on an approval happening before next week.

Senior Bloomberg ETF analyst Eric Balchunas noted that the SEC is in the final stages of commenting, with issuers expected to file their final 19b-4 and S-1 forms shortly.

Both forms are prerequisites for ETF trading, with the 19b-4 being particularly crucial for the spot Bitcoin ETF.

Scott Johnsson, a general partner at VB Capital, remains skeptical but acknowledges that market dynamics could surprise observers.

Despite the mixed opinions, the market is reacting positively to the prospect of a spot Bitcoin ETF approval.

After a brief dip influenced by a Matrixport report suggesting potential rejection, Bitcoin has rallied back to $44,500. This indicates that Investors are placing their bets on a positive outcome, undeterred by Wednesday’s decline.

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