The U.S. Securities and Exchange Commission (SEC) is poised to make potential history in the cryptocurrency market as it contemplates the approval of multiple spot Bitcoin ETF (Exchange-Traded Fund) applications. Over the next eight days, starting from Sunday, the SEC is expected to make decisions on 12 applications for these financial products.
The finance community is closely watching this development, acknowledging its significant implications. Industry observers suggest that the SEC might opt for batch approvals to ensure fairness, prevent market manipulation claims, and facilitate the integration of Bitcoin into mainstream financial services.
The deadline for issuers to submit their applications is Thursday, and late submissions will not be considered. The timing of these potential approvals is crucial as it could significantly enhance Bitcoin’s value by providing broader investor access through traditional financial channels.
However, there is a potential threat of a U.S. government shutdown due to unresolved political issues. In the event of a shutdown, non-essential services, including some functions of the SEC, could be disrupted, posing a risk of delaying important decisions on financial instruments like Bitcoin ETFs.
Starting Thursday, public comment periods will open for applications from firms such as Hashdex, Franklin Templeton, and Global X. These periods could extend the timeline for approval into January 2024. The SEC also has until January 10, 2024, to decide on Ark Invest’s spot Bitcoin ETF application but can approve nine other submissions before then.
These decisions are expected to set a crucial precedent for future financial instruments in the cryptocurrency market. It’s important to note that the information provided should not be considered as trading advice.