Speculations Persist Regarding Etf Approval

Although the posts on the X platform on Friday fueled hopes for the imminent approval of a spot Bitcoin ETF, some analysts believe that this approval will not happen right away

On Friday, speculation about the SEC approving spot Bitcoin exchange-traded funds (ETFs) garnered significant attention on social media. The post by Grayscale's Chief Legal Officer mentioning that they are "filling out some forms" and a widely shared post by a reporter fueled rumors that approval might come in the coming days. However, some analysts expect the approval to happen next week. TechCrunch reporter Jacquelyn Melinek, in a Twitter post on January 4th, referred to "extremely close" sources, suggesting that multiple ETFs would be approved and hinted at anticipating "something tomorrow."

heard from sources extremely close to the matter that the bitcoin spot ETF is going to be approved by the SEC for *multiple* firms' applications

— Jacquelyn Melinek (@jacqmelinek) January 4, 2024

The encrypted post by Grayscale's Chief Legal Officer stating "I'm filling out some forms" garnered significant attention. Since its publication, the post has received 1.9 million views and 6,700 likes. The hashtags #BTCETF and the term "Bitcoin ETF" are currently trending on X platform. Additionally, Bitcoin's price has started to recover, rising by 3.4% in the last 24 hours according to TradingView data, following the sharp drop on January 3rd.

BITCOIN ETF TOMORROW?? 🚀👀

— DustyBC Crypto (@TheDustyBC) January 5, 2024

Trader Scott Melkor responded to the rumors on social media, stating, "Rumors are getting increasingly crazy."

Analysts deny the rumors.

Bloomberg ETF analyst James Seyffart, on January 5th, dismissed most of the rumors about the upcoming approval as "empty noise" and emphasized his belief that the approval would come between January 8th and 10th.

Similarly, lawyer Joe Carlasare pointed out that the public comment period for various ETF applications would continue until midnight on January 5th, reducing the likelihood of approval before the beginning of next week.

Senior Bloomberg ETF analyst Eric Balchunas announced that the SEC has currently submitted final comments, and issuers will soon submit final 19b-4 and S-1 forms.

SEC is giving final comments as we speak, then issuers will submit final 19b-4s and S-1s soon after. So I mean this is def as close to "done" as we've been but no official approval as far as I know.

— Eric Balchunas (@EricBalchunas) January 4, 2024

For an ETF to start trading, both forms must be approved by the SEC. However, the definitive approval of a spot Bitcoin ETF requires the approval of the 19b-4 form as well.

Scott Johnsson, a partner at VB Capital, stated that due to the uncertainty of 19b-4 approvals and the SEC's emphasis on simultaneous approval, he does not believe the ETF approval will come before next week.

Among the firms awaiting approval for the Bitcoin ETF are BlackRock, Valkyrie, ARK Invest/21 Shares, Bitwise, and Fidelity, totaling 14 companies.

You can follow real-time developments and the latest news in the cryptocurrency markets on Kriptospot.com.