When Will Spot Bitcoin ETFs Launch for Trading? SEC Approvals are Imminent
The anticipation within the crypto community is palpable as news of a potential Bitcoin Exchange Traded Fund (ETF) approval looms large. Bloomberg Intelligence’s ETF Research Analyst, James Seyffart, provides some intriguing insights into this pivotal moment.
Seyffart sheds light on two key documents that hold the key to the approval process: the 19b-4 and S-1 filings. While Seyffart expresses optimism about the approval of the 19b-4 document, the challenge lies in determining when the ETF will begin trading post-approval.
In an interesting twist, Seyffart suggests that the ETF may start trading within one to two days after approval, deviating slightly from the usual timeline. However, he also acknowledges that there is no certainty and it could potentially take weeks for trading to begin. He emphasizes that while 19b-4 approvals are likely, the SEC’s sign-off on the S-1 filings is also necessary.
Collaboration plays a crucial role in this process, with ongoing discussions between major players like Hashdex, BlackRock, and the SEC. Seyffart views these discussions as a collaborative effort to ensure a smooth progression.
However, Seyffart notes some uncertainty surrounding the S-1 filings, which adds another layer of complexity to the situation.
From a global perspective, countries like Canada, Germany, and Brazil have already introduced Bitcoin ETFs. In contrast, the U.S. process has been more protracted. Seyffart highlights the potential significant impact of a U.S.-based Bitcoin ETF on the global cryptocurrency market.
If approved, the ETF would provide institutional investors with easier access to Bitcoin investment. Seyffart predicts that this could attract approximately $100 billion in investments, ultimately influencing the value of Bitcoin.
In conclusion, Seyffart’s analysis underscores the significance of obtaining approval for the Bitcoin ETF. Once approved, it could pave the way for important developments in the cryptocurrency world.