As the anticipated approval date for Bitcoin exchange-traded fund (ETF) applications approaches in 2024, experts have started making predictions and setting a significant timeframe for potential approval. Bloomberg’s ETF expert James Seyffart suggests that the approval window could occur between January 5th and January 10th. This prediction has ignited excitement within the cryptocurrency community, as it could mark a major milestone for the industry. However, it’s crucial to note that a failure to approve during this window could have significant implications for the U.S. Securities and Exchange Commission (SEC) and potential ETF applicants.
According to Seyffart, the potential approval orders for the Bitcoin ETF are likely to be issued on Monday, January 8th, Tuesday, January 9th, or Wednesday, January 10th. Joining him, expert Eric Balchunas estimates that there is a 10% chance or less that the approval will fall outside this window. The emphasis placed on this particular timeframe reflects the anticipation and uncertainty surrounding the decision.
Given the significance of the predicted window, a failure to approve the ETF during this period might indicate a significant shift in the SEC’s stance on cryptocurrency-related financial products. This shift could suggest either a more aggressive approach from SEC Chairman Gary Gensler and the regulator or a belief that the market is not yet ready for a spot Bitcoin ETF. In the latter scenario, it is possible that ETF applicants like ARK Invest and 21Shares have voluntarily withdrawn their applications with the hope of future consideration.
Caitlin Long, founder and CEO of Custodia Bank, points out that if the predicted approval window holds true, there will be an intense marketing battle among Bitcoin spot ETF issuers. The approved issuers will have their spotlight as they compete for investors’ attention and navigate the post-approval landscape. This development is expected to generate excitement among mainstream investors, many of whom have shown curiosity about Bitcoin’s resurgence following previous periods of doubt.
The timing of the potential approval also aligns with the April halving event and the U.S. presidential election, adding further intrigue to the market dynamics.
Insider sources reveal that the SEC has engaged in extensive meetings with Bitcoin spot ETF issuers. These discussions reportedly indicate a high probability of approval, with a reported 99% confidence level. The SEC meticulously reviews all applications, ensuring that every detail is thoroughly examined and all necessary requirements are met.
In the meantime, Grayscale, a prominent cryptocurrency asset management firm, is actively pursuing the possibility of being the first to offer a conversion-based ETF, pending a court decision. This move showcases the growing interest and competition around ETF approvals in the cryptocurrency space.
Notably, Bitcoin has recently achieved a new yearly high, solidifying its position as the leading cryptocurrency in the market. The cryptocurrency has steadily gained ground, forming higher lows and demonstrating an upward trend. Presently, BTC has surpassed the $38,800 mark, exceeding its previous milestone by over $400. The next target on the horizon is the $40,000 level, which has not been reached since April 2022.
Over the past 24 hours, the bullish momentum has remained strong, with BTC extending its gains by 2.9%. In the last 7 days, it has seen a 1.7% increase. As the ETF approval date approaches, market participants eagerly observe how Bitcoin’s price will respond. The final stretch of the year is likely to bring further excitement and potentially significant developments in the cryptocurrency market.
With the predicted approval date for Bitcoin ETF applications approaching, the cryptocurrency industry is filled with anticipation. The assigned timeframe for potential approval has raised excitement within the community, while failure to approve during this window could lead to notable consequences for the SEC and ETF applicants. The SEC’s evolving stance on cryptocurrency-related financial products is being closely observed, and the approval process is expected to trigger an intense marketing battle among Bitcoin spot ETF issuers. All eyes are on the developments surrounding Bitcoin’s price leading up to the anticipated approval date and the potential impact on the cryptocurrency market as a whole.
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