Validation of spot Bitcoin ETFs in sight this week: What impact on cryptos?



Investing.com – After being shaken last week by an analyst’s report that the SEC will unexpectedly refuse to validate spot ETFs, the cryptocurrency market is impatiently awaiting the verdict which in all likelihood should come this week.

Indeed, management companies, exchanges and the Securities and Exchange Commission (SEC) discussed on Friday the latest changes to the wording of the documents filed for ETFs, in what could constitute the final step before the American approval of the funds for the first time next week, according to sources familiar with the matter cited by Reuters.

Note also that several issuers declared Friday that they expected to receive final approval of S-1 files by the end of the day Tuesday or Wednesday.

Reuters also revealed that the SEC has requested what three issuers described as “minor” changes, such as to fees or the identity of market makers in their ETFs, updates which are expected on Monday.

Separately, regulators have been working with exchanges to finalize 19b-4 filings, which spell out rule changes the SEC must approve for bitcoin ETFs to launch, with exchanges submitting revisions to 11 last Friday. of these files.

People familiar with the filing process said issuers that have met year-end review deadlines could be allowed to launch by Jan. 10, when the SEC must approve or reject the filing. ‘ETF Ark/21Shares, the fund that is first in the queue out of 14 companies, including BlackRock (NYSE:), Fidelity and WisdomTree, that filed for spot bitcoin ETFs last year and are waiting a decision by the SEC.

It will also be recalled that Bloomberg previously reported that SEC commissioners are expected to vote on changes to Rule 19b-4 this week, likely Wednesday.

In other words, the lack of validation from the SEC this week should be interpreted as a negative signal, which would undoubtedly cause Bitcoin and other cryptocurrencies to fall.

However, it is also not guaranteed that the approval will cause BTC to take off. Indeed, many analysts have warned in recent weeks that the launch of spot Bitcoin ETFs could give rise to a phenomenon of “news selling after rumor buying”, Bitcoin having already fully integrated this factor, with investors already almost convinced of its realization.

Caution will therefore remain on Bitcoin and cryptocurrencies this week, especially since important macroeconomic data, including the US CPI, could also interfere by influencing expectations for the Fed’s next decisions.



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