• November 13, 2023
  • OarSmaN
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SEC’s Crucial Week Approaches for Bitcoin ETFs

The U.S. Securities and Exchange Commission (SEC) is at the forefront of a significant timeline this week. Until November 17, the SEC must decide on a series of spot Bitcoin Exchange Traded Funds (ETFs), a verdict eagerly awaited by investors and industry experts alike. Nate Geraci, President of ETF Store, highlights the insights of Bloomberg analyst James Seyffart to shed light on this pivotal moment.

Collective Approval for Spot Bitcoin ETFs?

According to Seyffart, the SEC is likely to approve spot Bitcoin ETFs collectively rather than individually, avoiding favoritism in a highly competitive sector. This approach aligns with the SEC’s commitment to neutrality in a fiercely competitive industry. Geraci emphasizes the distinction between 19b-4 approval orders and the approval of each issuer’s registration statement. While both are necessary for ETFs to list and trade, the latter is critical for launching these funds.

Now, attention focuses on applications from Hashdex, Franklin Templeton, and Global X, which enter a public comment period starting on November 17. Geraci’s analysis suggests that regulatory authorities will likely postpone these approvals until early January. Additionally, the potential government shutdown in the coming days adds another layer of complexity to the decision-making process. As highlighted by Geraci, this factor could impact the timeline for the approval process of ETFs.

SEC and the 12 ETF Applications

Bitcoin expert Alessandro Ottaviani provides context on the SEC’s ability to make a collective decision on the 12 applications within eight days from November 11 to November 17. This period precedes the public comment period for subsequent applications.

Approaching is January 10, 2024, a crucial date for the SEC to decide on Ark Invest‘s Bitcoin ETF. This marks the final extension date, adding suspense to the fate of Ark Invest’s application. The SEC may approve nine other ETF applications before this critical deadline. The regulatory body could adhere to its non-action bias in evaluating these pending applications. January 10, 2024, holds significance as the potential decision day for Ark Invest’s Bitcoin ETF. Therefore, the fate of multiple ETF applications hinges on the SEC’s actions leading up to this date.

This week marks a turning point for investors and companies involved in spot Bitcoin ETFs. The SEC’s decisions will not only influence the near future of these ETFs but will also set an example for how such financial instruments are treated in the U.S. market. As the deadline approaches, all eyes are on the SEC in an environment where regulatory decisions wield significant influence.

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