Bitcoin ETF Could Be Just Days Away — Are You Ready?

Recent interactions between the U.S. Securities and Exchange Commission (SEC) and several major stock exchanges have sparked optimism about the potential approval of a much-anticipated spot Bitcoin BTC/USD exchange-traded fund (ETF).

SEC staff attorneys from the Division of Trading and Markets met on Wednesday with representatives from prominent exchanges, including the New York Stock Exchange, Nasdaq and Chicago Board Options Exchange, the platforms where the ETFs would be listed, FOX Business reported.

Quoting sources from the involved firms, the report stated these meetings are being interpreted as a strong indication the SEC was close to approving some or all of the 12 applications from major financial institutions and crypto companies for this product.

Specifically, the SEC requested the exchanges complete and finalize their 19b-4 filings, which are essential for SEC clearance before the ETFs can be offered to the public.

While the final decision is pending, insiders suggested the SEC might start informing issuers about their approvals as soon as Friday, with trading potentially commencing the following week.

ETF analysts and issuers are hopeful for a positive outcome from the SEC by or before Jan. 10, as the agency continues discussions with key stakeholders.

There does remain a possibility of denial.

Earlier in the day, Singapore-based crypto platform Matrixport issued a research note predicting the SEC’s rejection of all spot Bitcoin ETF applications.

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This forecast was based on the Democrat majority within the SEC agency's five-member commission and Chairman Gary Gensler's apparent cautious approach to cryptocurrency.

Following Matrixport’s report, Bitcoin's value dropped more than 7% after almost reaching a two-year high of $45,000 on New Year’s Day, fueled by expectations of an ETF approval.

An SEC spokesperson informed FOX Business, "Broadly speaking, if the Commission declares a registration statement effective, that is reflected on EDGAR. Any Commission 19b-4 orders will be posted on our website and then published in the Federal Register."

Should the approval materialize, it would allow retail investors more accessible exposure to the world's largest cryptocurrency, potentially at a lower cost compared to the already sanctioned Bitcoin futures ETF.

Moreover, the involvement of well-regulated and reputable money management firms such as BlackRock Inc. BLK and Fidelity may encourage a broader spectrum of investors to include cryptocurrency in their investment portfolios.

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