The latest news emerging suggests that the Securities and Exchange Commission (SEC) is poised to greenlight the first-ever spot bitcoin exchange-traded fund (ETF) in the United States.
The latest news emerging suggests that the Securities and Exchange Commission (SEC) is poised to greenlight the first-ever spot bitcoin exchange-traded fund (ETF) in the United States. This is after the regulator convened a rare joint conference call with all spot ETF filers.
Spot ETF Nailed On For January 2024
The greenlighting of a spot market bitcoin ETF by early next month appears to be set in stone, with SEC’s key conference call with contenders only adding further to the likelihood of an approval.
During the surprising gathering, the Securities and Exchange Commission and ETF applicants discussed the next important steps. A critical takeaway, as revealed by insiders, was the emphasis on ensuring potential issuers adhere to the cash-creation setup for their funds, which the SEC regards as safer.
DOUBLE SCOOP: Sources that were on the call tell me it was to do with making sure everyone is doing cash creates. The @SECGov asked issuers to remove all hints of in-kind redemptions from their filings. https://t.co/hEjXBAHLpY
Several applicants, including BlackRock, ARK, Bitwise, and Valkyrie, have already conceded to the cash-only mechanism, while some — including Grayscale and WisdomTree — still have in-kind or cash in their applications.
Current conventional wisdom is leaning towards an SEC approval by January 10 on at least some of the over a dozen spot bitcoin ETF filings before the top Wall Street financial cop.
Bloomberg ETF analyst Eric Balchunas observed that the conference call and constant back-and-forth between the SEC and spot BTC ETF filers are an “interesting and good sign for January.”
“We are hearing it wasn’t one giant conf call b/t SEC and every issuer but rather many calls to exchanges/issuers to reiterate that its Cash Creates or You Will Wait,” Balchunas added.
How High Spot ETFs Can Push Bitcoin
Meanwhile, predictions about the implications of the coming spot Bitcoin ETF are running wild.
MicroStrategy’s Michael Saylor said in a recent interview with Bloomberg TV that the bitcoin ETFs might be the biggest Wall Street development in 30 years, possibly sparking a mega bull run for BTC in 2024 owing to increased demand and a supply shock.
As previously covered by ZyCrypto, there is increasing optimism that BTC could continue its upward trend into next year, potentially topping $80,000 and registering new all-time highs.
Over at Grayscale, CEO Michael Sonnenshein recently expressed his belief that the spot products could bring as much as $30 trillion into the crypto market.