Bitcoin ETF Ready To Make An Epic Landing: Exciting SEC Verdicts Await Investors

Approvals, rejections, or a middle ground await asset managers’ applications. The SEC’s stance on spot Bitcoin ETFs remains fluid and not definitively determined.

Anticipation surrounds the possibility of the US Securities and Exchange Commission greenlighting the listing of shares for a spot Bitcoin (BTC) exchange-traded fund (ETF) by Jan. 10, marking a historic first. However, the potential approval outcome holds various conceivable scenarios, even if the regulator decides to proceed with authorization.

Deny, Deny, Deny

While indications lean toward approval, there’s no absolute assurance of the SEC’s nod for a spot Bitcoin ETF at this publication time. Asset managers finalized paperwork stages, filing Form 19b-4 amendments on Jan. 5 and amended Form S-1 filings on Jan. 8.

Historically, the SEC hasn’t sanctioned a spot cryptocurrency exchange-traded product for US exchanges. Only in 2021 did it permit ETFs with crypto futures exposure. An October court ruling pushed the SEC to reassess a Grayscale Investments spot Bitcoin ETF application. However, this doesn’t preclude the SEC from rejecting the investment vehicle for different reasons.

Concurrent Approvals For Multiple Entities

There’s speculation among analysts that if the SEC proceeds with one spot Bitcoin ETF, more applications could ensue. In this scenario, asset managers like Valkyrie, WisdomTree, BlackRock, VanEck, Invesco, Galaxy, Grayscale, Fidelity, Bitwise, and Franklin Templeton might see approvals on Jan. 10. This coincides with the SEC’s deadline for an ETF proposed by ARK Invest and 21Shares.

Companies with pending applications seem prepared for this potential outcome. For instance, BlackRock reportedly plans an initial BTC acquisition of $10 million for its ETF. Moreover, these firms appear competitive in their listing sponsor fees for their respective ETF offerings, such as 0.25% from ARK Invest and 0.24% from Bitwise.

“If the BTC ETF gets approved, there might be significant increases in the infrastructure, meme coins, and application projects related to the BTC ecosystem,” said Juan Aranovich of Ryze Labs. “However, if the BTC ETF is not approved, the tokens of related ecosystem projects might experience even more severe declines.”

A Mix Of Approvals, Rejections Or Deferals

Should the SEC approve certain applications while rejecting others, the rationale provided must endure thorough scrutiny. Given the similarities among applications, it’s improbable for the commission to deny one based on concerns like investor protection or potential market manipulation — reasons cited previously — and simultaneously approve another.

While the commission confronts a final deadline for the ARK Invest and 21Shares ETF proposal on Jan. 10, decisions on numerous others might be postponed until March and beyond, contingent on their filing dates. Although deemed unlikely by some experts, there’s no absolute certainty that the SEC won’t alter its stance based on filings submitted within the past week.

* We hope this information will help you in your investment process, but this is not investment advice. Every investment carries risk, especially in this industry, so DYOR before making a decision.