The SEC’s final decision for spot Bitcoin ETF amendments is expected in early January 2024.
Three weeks before the SEC’s final decision
The final deadlines for the #Bitcoin Spot ETFs are in just under 3 weeks… pic.twitter.com/T7fgAKIcad
— Crypto Kid (@CryptoKidcom) December 18, 2023
First, the SEC had to issue its verdict on December 6 last. However, they announced that they would use their right to extend the consultation period of 45 days. It is in this context that the final decision now has the ultimatum on January 10, 2024. There are therefore only three weeks left before we possibly see the first spot (or “spot”) Bitcoin ETF approved.
BlackRock and Grayscale in a battle to see who can clock more SEC meetings. I think it’s like 5-4 BlackRock. Poss foreshadow of the asset/volume battle a year from now.. https://t.co/LXjfm0b0hu
— Eric Balchunas (@EricBalchunas) December 20, 2023
According to the latest news, the SEC would have held secret meetings with several ETF applicants, including BlackRock and Grayscale.
According to ETF expert Eric Balchunas, the case is “almost complete” and the new requests present “good signs” for a favorable final decision. BlaxckRock would have decided to launch its ETF in a manner “Cash Only” and not in “in-kind”.
“Cash only” means that authorized participants (APs), entities that interact directly with exchange-traded funds (ETFs), will not be able to obtain more shares (so-called share creations) of the ETF only by bringing the appropriate amount of money into the picture.” explain Vance Harwood.
He concludes by adding that this decision to go “cash only” will have a “minor” impact.
Interesting detail: SEC worried about money laundering via in-kind creations in a spot bitcoin ETF, this is why they so dug in on cash creates only (which is a much more closed system). Rest of the info here we already knew.. https://t.co/3qpXEaN6vM
— Eric Balchunas (@EricBalchunas) December 20, 2023
However, the SEC would still be fearful of a potential money laundering in the mode requests “in-kind”. Indeed, according to them, these Bitcoin ETFs could serve as a vehicle for laundering money.
What impact would a spot Bitcoin ETF have on the market?
6️⃣ Potential Impact on #Bitcoin:
👉 Michael Saylor, CEO of MicroStrategy, emphasized on Bloomberg TV that potential #Bitcoin ETFs could be the most significant Wall Street development in 30 years.
👉 He predicts that this could trigger a substantial bull run for Bitcoin in… https://t.co/nUcR1Ynwj4
— Keyur Rohit (@CryptoKingKeyur) December 20, 2023
According to analysts at JPMorgan, the impacts of ETFs have already been “priced” or recorded on the Bitcoin market price. Indeed, Nikolaos Panigirtzoglou declared that the impacts on the course would be “minimal”.
In opposition, Michael Saylor announces a potential bull run in 2024. According to him, this is “the biggest development on Wall Street in 30 years” and that we should not “underestimate” the potential of these Bitcoin ETFs. According to him, the announcement of next January 10 will provoke “a shock of demands”. Then she would be followedn April by a “supply shock”.
So there are only three weeks left before the SEC gives its final verdict. This will be the end of a historical storyline and saga for the cryptocurrency industry. Seeing all these financial institutions working hard to get a Bitcoin ETF Spot, this nevertheless heralds a future full of surprises for the industry. Especially after the next halving.
Sources: X and SEC press release.
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