The long wait for a Bitcoin ETF might finally be over soon, according to industry experts and market analysts. There are currently 12 Bitcoin ETF proposals pending approval by the U.S. Securities and Exchange Commission (SEC). While no official announcement has been made yet, there are several indications that a decision could be coming soon.
Timeline for Bitcoin ETF Approval:
Bloomberg Intelligence analysts predict that the SEC has one last eight-day window, starting December 7th, to approve all 12 spot Bitcoin (BTC) ETF applications this year.
Other experts believe that the first approval could come early in 2024, coinciding with the deadline for Cathie Wood-run ARK Invest’s application on January 5-10, 2024.
Coinbase’s chief legal officer Paul Grewal is confident that a U.S. Bitcoin ETF will be approved soon, especially after the SEC’s recent court defeat in the case of Grayscale’s Bitcoin ETF, reported Utoday.com.
Factors Supporting Bitcoin ETF Approval:
Increased regulatory clarity: The SEC has been gradually warming up to the idea of Bitcoin ETFs, as evidenced by the approval of Bitcoin futures ETFs and the recent court victory against Grayscale.
Growing demand from investors: There is significant demand from institutional and retail investors for a Bitcoin ETF, which would offer a more regulated and secure way to invest in the cryptocurrency.
Maturating Bitcoin market: The Bitcoin market has become increasingly mature and institutionalized in recent years, which could help alleviate the SEC’s concerns about market manipulation and volatility.
Potential Impact of Bitcoin ETF Approval:
Increased Bitcoin adoption: A Bitcoin ETF could lead to increased institutional adoption of Bitcoin, which could drive up the price of the cryptocurrency.
Greater mainstream acceptance: A Bitcoin ETF could help legitimize Bitcoin and make it more accessible to a wider range of investors.
Improved market liquidity: A Bitcoin ETF could improve the liquidity of the Bitcoin market, making it easier for investors to buy and sell Bitcoin.
While there are strong arguments in favor of Bitcoin ETF approval, it’s important to note that the SEC has not yet made a final decision. There is still a chance that the SEC could delay or even deny all pending applications.