SEC to consider up to ten Bitcoin ETF applications as markets price in approvals
- Eight to ten Bitcoin exchange traded product filings are currently under consideration by the US SEC, according to Chair Gensler.
- BTC price rallies this week, riding on the speculation that the US financial regulator’s approval for a spot Bitcoin ETF is imminent.
- SEC Chair Gensler says a potential five-member commission is likely to consider the filings, no commitment on timing.
Bitcoin (BTC) price rallied nearly 18% this week as market participants seem to be pricing in an upcoming approval of a BTC spot Exchange Traded Fund (ETF) in the United States. According to a Reuters report, the chair of the US Securities and Exchange Commission (SEC), Gary Gensler, said that the regulator is considering up to ten Bitcoin ETF applications.
Also read: “SEC is engaging with Ark Invest on Bitcoin ETF” says Cathie Wood; Bitcoin price to likely crash
US SEC continues to examine Bitcoin ETF filings
According to a recent Reuters report, there are eight to ten filings of Bitcoin Exchange Traded Products (ETPs) currently under consideration by the US SEC. Chair Gary Gensler mentioned that a five-member commission will potentially consider the filings, without prejudging the applications or committing to a deadline for the decision.
Until now, the US financial regulator has approved only Bitcoin futures ETF products. The possibility of a spot Bitcoin ETF approval has fueled hopes among traders, driving BTC price to more than $34,000 in the last week. The rising anticipation surrounding the spot Bitcoin ETF approval increased with asset manager Grayscale’s court win against the SEC and the fact that the US regulator didn’t appeal the court’s decision.
SEC Chair Gensler made no comments on the chances of an approval of any of these filings, emphasizing that the applications under consideration have various different filing dates.
Cathie Wood’s ARK Invest application is the first one being considered. Wood’s application expires on January 10, 2024, setting that as a deadline for the first ETF filings decision by the regulator.
Large financial institutions like BlackRock, Bitwise, WisdomTree, Fidelity and Invesco have lined up their spot BTC ETF applications, awaiting the regulator’s approval.
Approval chances of Bitcoin ETF at 90%: James Seyffart
James Seyffart, Bloomberg Intelligence ETF analyst, said that there is a 90% chance of approval of ARK’s Bitcoin spot ETF by the January 10 deadline. In a recent tweet, Seyffart said that the recent updates from Ark and 21Shares to their respective applications suggest there has been a “constructive conversation” with the SEC, leading to increasing chances of an approval.
I've gotten a lot of questions regarding my current view on Spot #Bitcoin ETFs over the last couple weeks. This is the first section of the note I put out yesterday with @EricBalchunas.
— James Seyffart (@JSeyff) October 13, 2023
TLDR: Our view hasn't changed much https://t.co/dRAm5IsdQf pic.twitter.com/Htsi3n2XxV
With investors largely pricing in a green light from the US regulator, the upcoming SEC decision on spot Bitcoin ETF applications has the potential make or break the current BTC price rally.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
