BitcoinETF

Spot Bitcoin ETFs on the Horizon: SEC Expected to Approve Spot Funds in January 2024

The cryptocurrency sector is eagerly awaiting the decision of the U.S. Securities and Exchange Commission (SEC) on the approval of the first spot Bitcoin ETFs. These funds would allow investors to buy and sell Bitcoin directly, without the need for intermediaries or derivatives.

spot Bitcoin ETFs

According to Scott Johnsson, a general partner at Van Buren Capital, the SEC is likely to approve the spot Bitcoin ETFs between Jan. 5 and Jan. 10, 2024. He based his prediction on a letter from Sherry Haywood, an SEC official, who stated that the commission would make a final determination on the pending applications within that time frame.

Johnsson’s forecast is in line with the opinion of Eric Balchunas, a Bloomberg analyst, who gave a 90% probability of a Bitcoin ETF approval by Jan. 10.

The SEC is currently reviewing applications from various firms, including BlackRock, Grayscale, 21Shares & Ark, Bitwise, VanEck, Wisdomtree, Invesco & Galaxy, Fidelity, and Valkyrie. However, there is a possibility of further delays, as the SEC has the authority to extend the review period or request additional information from the applicants.

The approval of the spot Bitcoin ETFs would represent a significant milestone in the cryptocurrency sector, as it could pave the way for greater mainstream adoption and investment in Bitcoin and other digital assets. It could also boost the price of Bitcoin, which has already seen a remarkable surge in recent weeks.

On Friday, Bitcoin’s value soared to approximately $39,000, marking its highest level since May 2022. Despite regulatory pressures in the cryptocurrency sector, such as Binance’s $4.3 billion settlement, the digital currency achieved notable gains. In the week of Thanksgiving, Bitcoin’s value increased by roughly 5%, and it’s projected to rise close to 3% in the current week.