SEC decides on the approval of Bitcoin-Spot-ETF: How likely is approval and when is it expected?

SEC decides on the approval of Bitcoin-Spot-ETF: How likely is approval and when is it expected?

When will the Securities and Exchange Commission (SEC) finally allow a Bitcoin spot ETF? The crypto community currently employs this question, especially after Blackrock, Fidelity and other sizes of the traditional financial market have submitted applications for the approval of such an ETF. So far, the first levered Bitcoin futures ETF has been approved in the United States, but a spot ETF has not yet made it.

In an interview with CNBC, former SEC boss Jay Clayton informed his thoughts about a Bitcoin-Spot ETF. In the past, Clayton was instrumental in rejection of such an ETF, but his attitude seems to have changed. He explained that he was initially skeptical about the Bitcoin market due to concerns about wash trading and market manipulation. Now, however, he finds it exciting that large asset managers such as Blackrock and Fidelity have made applications for a spot ETF. Clayton believes that a spot ETF would be more efficient and safer for investors than a futures ETF and that the approval of such a product would be justified if the institutions can prove that the spot market is as effective as the futures market.

But when will the SEC make its decision? The official documents of the SEC show that the latest deadline for a decision lies on March 19, 2024. Only the ETF application from ARK Invest has its final Deadline this year. Investors may have to be patient for a while, while the SEC carefully checks all eventualities. However, a possible approval could fall close to the next Bitcoin meeting, which brings additional tension into the market and increases the potential for an explosive bullrun next year.

In order to improve the chances of admission, Blackrock and other asset managers suggest using Coinbase as a trading partner to improve market monitoring and increase transparency on the pseudonymous spot market. Although Coinbase is currently charged with alleged violations of the US Worth paper Act, it is a stock market-listed company that is already subject to increased regulatory conditions.

The efforts of Blackrock and Co. already have positive effects on the Bitcoin market. The on-chain analysis company Glassnode has found that the proportion of the Bitcoin offer that has been held and traded by US companies has increased since BlackRock's application has increased. This indicates that US investors consider approval of a spot ETF to be likely and therefore already accumulate large amounts of Bitcoin.

Despite some uncertainties regarding the approval of a Bitcoin spot ETF, the possibility of approval is becoming increasingly likely. The chances are good that the Sec finds no valid reason for a new rejection. Investors and the entire crypto community are eagerly awaiting the final decision, which could possibly be a turning point for the cryptoma market.