The U.S. Securities and Exchange Commission (SEC) met with representatives of the country's stock exchanges on Wednesday, reinforcing expectations that it could soon approve a Bitcoin spot ETF.
Bitcoin rallied by 6% on Wednesday, after it became known that the SEC met with representatives from Nasdaq, the Chicago Board Options Exchange (CBOE) and the New York Stock Exchange (NYSE), to discuss matters related to the possible listing of a Bitcoin ETF.
The price of the cryptocurrency had depreciated this Wednesday, reaching a price of over $40.000 per BTC, due to rumors of a possible rejection by the SEC, to the ETF applications. In a report Recently, the Matrixport platform indicated that Gary Gensler, the current chairman of the SEC, is not pushing for the adoption of cryptocurrencies in the country and that there was a possibility that the regulatory agency would end up rejecting all applications to launch a spot ETF in the US market. This is because Gensler believes that the crypto industry still needs stricter regulations to ensure investor security and compliance.
However, hours later, Fox Business journalist and producer Eleanor Terrett reported that the SEC was meeting with US stock exchanges and were discussing matters related to Bitcoin spot ETFs.
Bitcoin's price has started to appreciate, rising 6% from $40.800 on Wednesday. At the time of writing, The price of Bitcoin is $42.720 dollars by BTC.
January 10th is approaching
There are just 7 days left until the SEC issues a decision on the spot ETF application from Ark Invest and 21Shares.
As reported by this media, the United States securities regulator has until January 10 to decide whether to approve or reject the Bitcoin exchange-traded fund proposed by both companies.
Expert estimates indicate that there is a 90% chance that the SEC will approve Ark Invest's spot ETF and will give the green light to several of the funds proposed by the asset managers simultaneously, in order to avoid giving the investment firm a competitive advantage. In addition to this, Terrett recently said that sources close to the regulator told him that The SEC is likely to rule on these listed investment vehicles as early as Friday.
According to the outlet, the regulatory agency could notify asset managers about the approval of their exchange-traded funds as early as this week, and the funds could begin trading on stock exchanges the following week.
Statistically, however, there is still a 10% chance that the SEC will end up rejecting the spot ETF applications in question.
What do experts think about the approval of a Bitcoin spot ETF?
Bloomberg ETF analyst Eric Balchunas said last month that he stood by his estimates that the SEC will approve Bitcoin ETFs and that he was very optimistic about it. He recently indicated that if the SEC is planning to reject or delay the launch of Bitcoin ETFs, it probably wouldn’t be meeting with representatives of the country’s stock exchanges to discuss the matter.
On the other hand, Balchunas highlighted the actions of fund issuers, who have been focused on the 19b-4 forms, which the SEC requires in order to authorize cash ETFs. He commented that “the SEC has been going back and forth with issuers to perfect their 19b-4s, instead of making numerous representations to the S-1.” He also indicated that, so far, There is nothing to suggest that the SEC could reject Bitcoin funds.
This week, BlackRock, Valkyrie Investments, Fidelity, WisdomTree and Invesco named their fund authorized participants, while Grayscale Investments updated its ETF presentation for the third time. On the other hand, BlackRock plans to seed its fund with $10 million in Bitcoin this week, as it announced last month, and Bitwise Asset Management, its exchange-traded fund with about $XNUMX million in Bitcoin, is planning ... $ 200 millones of dollars.
Continue reading: 15 years have passed since the creation of the Bitcoin Genesis block
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