According to Ark Invest founder and CEO Cathie Wood, the SEC could approve several of the several pending applications to launch a Bitcoin spot ETF simultaneously.
The Securities and Exchange Commission (SEC) has 30 days, starting today, to issue a ruling Final decision on Bitcoin ETF application in cash, sent by Ark Invest and 21Shares.
The US asset manager, founded by investment expert Cathie Wood, submitted a new application to the SEC in April to launch a Bitcoin exchange-traded fund. The securities regulator has until 240 days to study and respond to this application, so accordingly, the deadline for the SEC to definitively respond to Ark Invest's Bitcoin ETF application is met on next january 10.
The proximity of this deadline for the SEC to rule on the ARK 21Shares Bitcoin ETF (ARKB), has the crypto community on the lookout for possible approval.
According to Bloomberg ETF expert Eric Balchunas, there is a 90% chance that the SEC will give a positive response Ark Invest and 21Shares’ Bitcoin ETF application, which, if approved, will trade on the Chicago Board Options Exchange (CBOE) under the ticker ARKB. What’s more, the U.S. securities regulator may end up ruling on at least half a dozen applications for a Bitcoin spot exchange-traded fund, according to Cathie Wood’s estimates.
The founder and CEO of Ark Invest believes that the securities regulator could simultaneously authorize 6 or more Bitcoin ETFs to be listed on US exchanges next month. However, there is also a possibility that the SEC will end up rejecting all pending Bitcoin ETF applications to date.
90% chance of SEC approving Bitcoin ETF in January
Although the SEC has delayed several pending Bitcoin ETF applications and rejected dozens of previous ones, experts believe that a massive wave of approval for this investment vehicle is now approaching.
Economics expert and Bitcoin enthusiast Alessandro Ottaviani listed on his social media the reasons why the crypto community has become increasingly optimistic about the possible approval of a Bitcoin spot ETF in the United States and therefore, about the price of Bitcoin.
According to Ottaviani, “the SEC is likely to approve all or most Bitcoin spot applications,” mainly because The demand for this financial instrument among institutional investors has grown exponentially.
Ottaviani also commented that The narrative around Bitcoin mining and the environmental impact of the blockchain network has changed, seeing how this year, several institutions have published new articles highlighting the potential benefits of cryptocurrency and blockchain.
On the other hand, Ottaviani also mentioned that Financial advisors are starting to look for exposure to Bitcoin and that agencies like the Financial Times, Bloomberg and Forbes begin to recognize the value of cryptocurrency, which is currently the most capitalized on the market.
Regarding the rise in the price of Bitcoin, the expert commented that many people expect BTC to reach a new all-time high, exceeding $69.000, next year. This, considering that a large part of investors are long-term holders and that the fourth halving of the network is very close. “The long bear market (of 2022) also worked as a great cleansing of many weak hands.” In addition to this, Ottaviani highlighted that high interest rates in the US market will push many investors to look for alternatives in other more attractive sectors with more opportunities, such as Bitcoin and cryptocurrencies.
«Bitcoin is increasingly perceived as a hedge against inflation, rather than a high-risk investment».
Previously, the expert had noted that it was impossible to accurately predict what the real impact of the approval of the Bitcoin ETF would be on the market, since we have never been in a situation similar to the current one, in which there is a fairly significant demand for an asset with planned scarcity and limited supply.
Ottaviani stressed that asset managers seeking SEC approval to launch a Bitcoin ETF add up More than $15 trillion in assets under management and that, according to EY, a significant part of these funds could be directed to Bitcoin, once a spot ETF is approved. On the other hand, the expert also said that the same financial advisors who did not listen to the bitcoiners, will listen to BlackRock, Fidelity and other managers, and that will begin to recommend their clients to maintain a certain exposure to Bitcoin.
Continue reading: Will there be a Bitcoin spot ETF in January?
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