Bitcoin Eyes $37,000: Bloomberg Analysts Give Timeline To Spot ETF Approval
09 November 2023 - 8:45PM
NEWSBTC
Bitcoin has risen above $36,000 and is currently targeting $37,000
as Bloomberg analysts Eric Balchunas and James Seyffart have
revived hopes that a Spot Bitcoin ETF could be approved this year.
The analysts maintain their belief of a 90% chance that any of
these funds get approved by January 2024. An Approval Order
“Could” Occur This November In a post shared on his X (formerly
Twitter) platform, Seyffart highlighted a new research note that he
and Balchunas had just worked on. From their research, they noted
that there is a “brief window” that allows the US Securities and
Exchange Commission (SEC) to approve all 12 Spot Bitcoin ETF
applications at once. Related Reading: Ethereum Failed
Transactions: You Won’t Believe How Much Users Have Lost This brief
window (which opens up on November 9) will last for at least eight
days, before which it is almost possible for the SEC to approve all
applications at once until next year. The reason for their
assertion is that the SEC cannot approve an application that is in
the comment stage. It so happens that the comment stage of the last
applications that the SEC delayed ends on November 8, which is why
they highlighted the window that starts from November 9. As
to why the window is only going to last for about eight days, the
SEC is expected to decide on Hashdex and Franklin’s application on
November 17, which could put both applicants in the comment stage.
This is because it is expected that the SEC will opt to delay its
decisions on those funds and ask the general public for comments on
them. Meanwhile, the analysts noted that this window only
applies to the SEC approving all 12 applications at once. They
explain that “theoretically,” the Commission could decide on the
other applications from now until January 10, 2024, even if it
chooses to delay its decision on Hashdex and Franklin’s application
on November 17. Whatever happens, they still believe that there is
a 90% chance that any of these funds get approved by January 10
next year. A Spot Bitcoin ETF Launch Isn’t So Straightforward When
quizzed about how long it will take for these funds to launch after
approval, Balchunas mentioned in an X post that he guessed that the
“19b-4s” applications would be approved in the “not so distant
future.” Then it will further take a while for the SEC to approve
the “S-1s” after which it “would likely be days till launch.”
Related Reading: XRP News: Ripple CEO Teases Major Announcements At
Swell Event Seyffart also echoed similar sentiments as he stated
that there are “two paths” that need to be completed before an ETF
launches. One is the 19b-4 approval, after which the division of
Corporation Finance at the SEC will still need to sign off on the
S-1s. However, there is no sign that any of that has been done yet.
As such, it could take “weeks or even months” between approval and
launch. Irrespective of that, Bitcoin has picked up on the
possibility that Spot Bitcoin ETFs could be approved this month and
has ridden on that wave to above $36,000. At the time of writing,
the foremost cryptocurrency is trading at around $36,700, up over
4% in the last 24 hours, according to data from CoinMarketCap. BTC
price above $36,600 | Source: BTCUSD on Tradingview.com Featured
image from The Economic Times, chart from Tradingview.com
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