Bitcoin ETF: SEC's Quick Feedback, Warnings, and Odds Hint Imminent Approval

by Arnab Shome
  • Two Bloomberg analysts are giving 90 percent odds to the Bitcoin ETF approval.
  • A warning against crypto from SEC's Chief hints at the possibility of approval.
SEC
Gary Gensler, the SEC's Chairman
Join our Crypto Telegram channel

Now, the Securities and Exchange Commission (SEC) only has two working days to announce its decision on spot Bitcoin exchange-traded fund (ETF) as the Wednesday deadline is looming. Although the regulator rejected and delayed its decision for years, this time, the industry is optimistic for approval.

The optimism is directly reflected in the Bitcoin price, which tests the $47,000 level. As of press time, Bitcoin is trading at more than $46,700 apiece, gaining above 6.3 percent in the last 24 hours.

According to the popular Fear and Greed Index, the crypto market is facing “Extreme Greed” at the highest level since October 2021.

"A Bitcoin spot ETF will significantly increase the liquidity and total volume of Bitcoin traded. This, in turn, shall benefit derivative markets by making it easier and cheaper to hedge positions, enter and exit trades, and execute sophisticated options strategies," Charles d'Haussy, CEO dYdX Foundation told Finance Magnates.

SEC Is Responding Actively

The potential Bitcoin ETF issuers submitted their documents with the SEC on Monday detailing fees for the potential product. Interestingly, the agency sent comments to a set of prospective issuers on the same day, which is very unusual, Coindesk reported.

The comments from the regulator addressed minor details in the amended S-1 forms, and the issuers must file the updated document by the end of Tuesday. Nasdaq, NYSE Arca, and Cboe BZX also filed the amended 19b-4 documents showing strong anticipation for the Bitcoin ETF approval.

Two Bloomberg analysts are further anticipating the approval of Bitcoin ETF before the Wednesday deadline with 90 percent odds in favor. The odds at Polymarket, a crypto-based betting platform, are showing 85 percent odds in favor of approving a Bitcoin ETF by January 15.

Hints from the Regulator?

The SEC's Chief, Gary Gensler, has always been critical of Bitcoin. On Monday, he posted a thread on X (formerly Twitter), warning against the risks of crypto investments. “Investments in crypto assets also can be exceptionally risky & are often volatile,” he wrote.

In another warning, the SEC officially reissued its warning against the “Fear of Missing Out” phenomenon in crypto investments last Friday.

Although both warnings would be ordinary at any other time, the fact that both came at the same time and days ahead of the decision might indicate the chances of approval.

Now, the Securities and Exchange Commission (SEC) only has two working days to announce its decision on spot Bitcoin exchange-traded fund (ETF) as the Wednesday deadline is looming. Although the regulator rejected and delayed its decision for years, this time, the industry is optimistic for approval.

The optimism is directly reflected in the Bitcoin price, which tests the $47,000 level. As of press time, Bitcoin is trading at more than $46,700 apiece, gaining above 6.3 percent in the last 24 hours.

According to the popular Fear and Greed Index, the crypto market is facing “Extreme Greed” at the highest level since October 2021.

"A Bitcoin spot ETF will significantly increase the liquidity and total volume of Bitcoin traded. This, in turn, shall benefit derivative markets by making it easier and cheaper to hedge positions, enter and exit trades, and execute sophisticated options strategies," Charles d'Haussy, CEO dYdX Foundation told Finance Magnates.

SEC Is Responding Actively

The potential Bitcoin ETF issuers submitted their documents with the SEC on Monday detailing fees for the potential product. Interestingly, the agency sent comments to a set of prospective issuers on the same day, which is very unusual, Coindesk reported.

The comments from the regulator addressed minor details in the amended S-1 forms, and the issuers must file the updated document by the end of Tuesday. Nasdaq, NYSE Arca, and Cboe BZX also filed the amended 19b-4 documents showing strong anticipation for the Bitcoin ETF approval.

Two Bloomberg analysts are further anticipating the approval of Bitcoin ETF before the Wednesday deadline with 90 percent odds in favor. The odds at Polymarket, a crypto-based betting platform, are showing 85 percent odds in favor of approving a Bitcoin ETF by January 15.

Hints from the Regulator?

The SEC's Chief, Gary Gensler, has always been critical of Bitcoin. On Monday, he posted a thread on X (formerly Twitter), warning against the risks of crypto investments. “Investments in crypto assets also can be exceptionally risky & are often volatile,” he wrote.

In another warning, the SEC officially reissued its warning against the “Fear of Missing Out” phenomenon in crypto investments last Friday.

Although both warnings would be ordinary at any other time, the fact that both came at the same time and days ahead of the decision might indicate the chances of approval.

!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|} !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}