As the U.S. Securities and Exchange Commission opens the window to approve a spot Bitcoin ETF for the first time, analysts note that even if the SEC approves a spot Bitcoin (BTC) exchange-traded fund (ETF), it will take a month. Actual startup.
Since the launch of the ETF requires a two-step process, the launch is expected to be delayed pending approval from the U.S. Securities and Exchange Commission (SEC). For an issuer to launch a Bitcoin ETF, its 19b-4 filing must be approved by the SEC’s Trading and Markets Division, and an S-1 filing or prospectus must be approved by the Corporate Finance Division.
The corporate finance department’s primary focus includes fund operational details and risk disclosures. Of the 12 Bitcoin ETF applications so far, nine issuers have submitted revised prospectuses, showing that they have communicated with corporate finance departments. Market analysts believe that if the SEC approves 19b-4 before the prospectus document is signed, the launch of the Bitcoin ETF may be delayed.
Bloomberg ETF analyst James Seyffart pointed out that even if 19b-4 is approved, S-1 approval may take weeks or months to be approved and launched.
What Scott said: The launch of ETFs needs to complete two paths. Even if the 19b-4 is approved, the S-1 still requires approval from Corp Fin. There are no signs of completion yet.It can take weeks or even months between approval and launch pic.twitter.com/7OLj5HjSDy
— James Seyff (@JSeyff) November 8, 2023
The SEC has an eight-day window (starting on November 8 and ending on November 17) to approve the first spot Bitcoin ETF. Although market experts have increased the likelihood of approval by 90%, they believe it won’t happen until early next year.
New research notes I wrote today.We still believe there is a 90% chance of getting spot before January 10th #bitcoin ETF Approved.But if it comes sooner, we’ll be entering a window where there *might* be a wave of approval orders for all current applicants pic.twitter.com/u6dBva1ytD
— James Seyff (@JSeyff) November 8, 2023
The SEC earlier extended the comment deadline for spot Bitcoin ETFs to November 8.
related: Yat Siu: Spot Bitcoin ETF Hype Rekindles Enthusiasm for Blockchain Gaming
The race for a U.S. spot Bitcoin ETF began with an application from BlackRock, the world’s largest asset manager. Although Fidelity and some other asset managers also applied for spot Bitcoin ETFs, most were rejected or withdrew their applications.
However, the 2023-2024 cycle has prompted many market commentators to predict that spot ETFs may be approved, with a probability of up to 90%.
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