In the dynamic world of cryptocurrency investment, the eagerly awaited decision on Bitcoin Exchange-Traded Funds (ETFs) by the United States Securities and Exchange Commission (SEC) is causing ripples of anticipation among investors. As 2024 kicks off, January has become a focal point for potential approvals, but recent insights from experts suggest a delay in the SEC’s verdict.
Contrary to speculations circulating in the financial sphere, the likelihood of the SEC greenlighting Bitcoin ETFs imminently seems to be dwindling. Noted financial analyst Eleanor Terrett from Fox Business weighed in on the matter, expressing skepticism about immediate approvals. According to Terrett’s analysis shared in the New Year’s update, the SEC has yet to review the revised S-1 forms, a necessary step in the process.
Sources close to the situation revealed that major industry players such as Grayscale and BlackRock had submitted amended S-1 forms, aiming to position themselves at the forefront of potential approvals in January 2024. These forms, known as Form S-1, are fundamental documents required by the SEC for companies seeking to introduce new securities to the public.
Reports circulating within the financial realm indicated that contrary to prior rumors, January did not herald the immediate green light for Bitcoin ETFs. Notably, Fox Business journalist Eleanor Terrett expressed skepticism regarding the likelihood of these approvals materializing in the initial days of January 2024.
Terrett’s insights suggested that the SEC had yet to conduct a thorough examination of the amendments made to the crucial Form S-1 documents, submitted by major entities such as Grayscale and BlackRock. The S-1 form stands as the cornerstone requirement mandated by the SEC for the public offering of new securities by domestic issuers.
Speculation had been rife, fueled by expectations of an imminent decision on the ETFs tied to Bitcoin’s spot price. However, this enthusiasm seemed to be curbed as reports surfaced indicating the SEC’s ongoing review processes for the amended S-1 forms. This pivotal step precedes any potential approval, forming a crucial part of the regulatory procedure.
Terrett outlined a prospective sequence of events, shedding light on the expected course of action by the SEC. According to her, once the current review phase concludes, the SEC would signal to issuers a finalized deadline for submitting the updated S-1 forms. Subsequently, the agency could move swiftly, possibly making the ETFs effective within 24 to 48 hours post-approval, mirroring a timeline observed in the case of Ethereum (ETH) futures ETFs.
Terrett highlighted a crucial procedural aspect, indicating that the SEC would intimate issuers about the deadline for filing the final S-1s following the ongoing review phase. Subsequently, assuming a standard protocol akin to Ethereum futures ETFs, the agency might render ETFs effective within 24 to 48 hours post the final filings.
This recent clarification emerges in the wake of earlier reports from Reuters, citing insider sources, which hinted at a potential decision on spot ETFs during the initial week of the new year. However, it appears that further scrutiny and evaluation of the amended documents are in progress, possibly extending the timeline for a conclusive SEC ruling.
Noteworthy is the impending deadline facing numerous applicants in January, with significant attention directed towards the joint proposal put forth by ARK and 21 Shares, slated for a decision on January 10. Meanwhile, Grayscale’s proposed conversion of its trust, GBTC, into an ETF hangs in the balance with a final determination expected by January 25.
The cryptocurrency market is on edge as investors await the SEC’s judgment, aware of the potential market impact that a positive decision could yield. Bitcoin’s recent surge above $45,000 to start the year has only heightened the anticipation surrounding the SEC’s call on Bitcoin ETFs.
As January unfolds, all eyes remain fixated on the regulatory proceedings within the SEC chambers, holding the power to significantly sway the landscape of cryptocurrency investment.
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