Trading of spot bitcoin ETFs could begin as early as next week

Author: Domagoj Mataić

January 5, 2024

According to FOX Business, the U.S. Securities and Exchange Commission (SEC) is close to approving several spot bitcoin ETFs. In a series of key meetings held with major exchanges, including the New York Stock Exchange (NYSE), Nasdaq and the Chicago Board Options Exchange (CBOE), the SEC is reportedly finalizing its review of applications for the long-awaited spot bitcoin exchange-traded fund.

Trading as early as next week?

These discussions are focused on revising and finalizing the 19b-4 submissions. These are filed by exchanges on behalf of ETF issuers and require SEC approval before the ETFs can be sold to the public.

The discussions are a positive indicator that the SEC may give the green light to some, if not all, of the dozen applications from major managers.

Although a final decision has yet to be made, insiders suggest that the agency could begin notifying issuers of their approval as early as this Friday. This development could lead to the start of trading of spot bitcoin ETFs as soon as next week. Analysts and ETF issuers remain optimistic and expect a favorable SEC decision on January 10 or earlier.

This potential approval comes amid fluctuating confidence in the crypto market. A recent survey by Matrixport suggested that the SEC, led by Chairman Gary Gensler, could reject all ETF applications due to the current Democratic majority on the Commission and its historically cautious stance towards cryptocurrencies.

These speculations contributed to a drop in the price of bitcoin by more than 7 percent, following a surge to nearly $45,000 on Tuesday. However, the price quickly recovered, and bitcoin is currently trading above $44,000.

Potential implications of spot ETFs on crypto investments

If the SEC approves spot bitcoin ETFs, it would mark a milestone for the cryptocurrency industry, offering institutional as well as retail investors greater access to the world’s largest digital asset at a lower cost than currently approved futures ETFs.

Furthermore, the introduction of ETFs through reputable and highly regulated asset management firms such as BlackRock or Fidelity could expand the investor base and further motivate them to include cryptocurrencies in their investment portfolios.

An SEC spokesperson stated that any decision regarding the registration statement or 19b-4 orders will be published on the agency’s website and in the Federal Register.

As the deadline for a decision on January 10 approaches, the financial world is watching closely, eager to see if the SEC will pave the way for a new era of cryptocurrency investment.