Author: Katie Greifeld, Allyson Versprille, Source: Bloomberg; Compiler: Songxue, Jinse Finance
A series of key deadlines this week will mark the culmination of a years-long push to launch a Bitcoin-backed exchange-traded fund (ETF) in the United States.
Issuers interested in launching a Bitcoin ETF were given until Monday morning Washington time to submit any last-minute revisions to complete the process for their pending applications, Bloomberg News reported. The SEC itself has until January 10 to take action to make a decision on at least one of the applications, and crypto industry insiders speculate that the regulator may use that day to announce a series of decisions simultaneously.
Before a spot-enabled Bitcoin ETF can begin trading, two technical requirements must be met. First, the U.S. Securities and Exchange Commission (SEC) must approve so-called 19b-4 filings by exchanges, which contain information about the exchange on which the ETF will be listed. Second, regulators must approve the relevant Form S-1, which is an application to register as an intended issuer, which includes companies such as BlackRock and Fidelity.
According to Bloomberg News, the SEC plans to vote on the exchange’s 19b-4 filing in the coming days. Regulators may or may not take action on an issuer's S-1 filing at the same time. If the SEC grants both sets of required approvals, the ETF could begin trading the next business day.
An SEC representative declined to comment on the status of the filing.
Bitcoin backers say an ETF backed by the largest crypto token would represent a watershed moment for the digital asset industry. Billions of dollars are at stake, representing potential inflows from retail and institutional investors.
Michael Anderson, co-founder of crypto venture capital firm Framework Ventures, said: “The market is still severely underestimating the potential impact of a Bitcoin ETF approval.”
But the SEC under Democrat Gary Gensler and his Trump-era predecessor Jay Clayton had previously refused to allow such products, citing concerns about investment investor protection and the possibility of market manipulation.
However, since the SEC lost a key legal battle against crypto asset manager Grayscale Investments in August, speculation has been rising that the regulator will have to give in to growing calls for the product.
Market speculation that regulatory approval was imminent fueled a more than 160% increase in Bitcoin's price last year. However, this was still not enough to regain the previous high of around $69,000 set in November 2021. Since the start of 2024, Bitcoin prices have been trading within a relatively narrow range, holding around $45,000.
