What is the likelihood of the Securities and Exchange Commission (SEC) approving a Bitcoin ETF within the next week? Delving into the chances.
Bitcoin has kicked off 2024 with a bullish start, breaking the $45,000 mark for the first time since April 2022 and experiencing a 6% increase in value. This surge is attributed to the growing anticipation surrounding the potential approval of spot Bitcoin Exchange-Traded Funds (ETFs) by the U.S. Securities and Exchange Commission (SEC).
Currently valued at $45,364.58, Bitcoin’s rise is fueled by optimism about its mainstream acceptance. However, analysts caution that a price correction may occur after the approval of the ETF, emphasizing the importance of monitoring Bitcoin’s response to regulatory changes in the coming days.
The latest update on the highly anticipated spot Bitcoin ETF revolves around the ongoing review of the S-1 forms submitted by various entities vying for the ETF before the December 29, 2023 deadline. Eleanor Terrett from Fox Business has reported that the SEC is still examining the changes made to these forms, indicating a potential approval.
This review process is crucial as it signifies a step closer to the potential approval of the first-ever spot Bitcoin ETF in the United States. Major contenders in this race include BlackRock, Invesco, Valkyrie, and others, all competing for the approval of a Bitcoin ETF.
Based on previous approval timelines, the most likely window for the SEC to give the green light to the Bitcoin ETF is January 9 or 10, 2024, according to Terrett’s insights. However, considering the complexities of the regulatory process and the holiday break, the final approval may slightly extend into the early days of that week, as the SEC staff will be off from December 29, 2023.
Industry expectations regarding the approval of the Bitcoin ETF are mixed, and it seems less likely to secure approval before January 6, 2024. However, this delay has not hindered Bitcoin’s momentum, as it started the year with an impressive nearly 5% price surge within 24 hours. This recent increase in Bitcoin’s value adds to the mounting anticipation surrounding the potential ETF approval, fueling optimism among investors and enthusiasts eager to see Bitcoin enter the ETF market.
Analysts predict that the approval of a Bitcoin ETF could attract significant investments, allowing investors to access Bitcoin without direct ownership. However, doubts persist about an immediate significant price surge due to recent challenges in the crypto space, such as regulatory hurdles and corporate failures, which have dampened enthusiasm.
Despite hopes for a recovery in 2023, Bitcoin’s rebound did not attract extensive investment or trading as seen during previous highs, partly due to high-interest rates limiting investment opportunities. Gabor Gurbacs, the Director of Digital Assets at VanEck, foresees an initial inflow of a few hundred million dollars into the ETF, with a stronger long-term impact upon its launch.