Important insights for a week

Sources at the US Securities and Exchange Commission (SEC) say the agency could begin notifying Bitcoin exchange-traded fund (ETF) applicants as early as Friday. Grayscale Investments and Fidelity Investments are pleased to issue Form 8A securities registration form today.

Bloomberg analyst James Seifert predicted that most successful applicants will be ready to launch their ETFs within days, rather than weeks as previously thought. The ratification dates are set for January 8 – January 10, 2023, ten years after the first attempt.

Grayscale SEC Slot Stocks Bitcoin Spot ETF Hyp

The excitement surrounding the approval comes amid numerous filings discussing the registration of authorized partners and securities. Eric Balchunas of Seyfert predicted that companies would rush to name approved partners in the run-up to the approval deadline.

Seyffart said the Form 8A filed by Grayscale and Fidelity is part of the ETF's listing process and is not itself an endorsement. It is a filing based on the effectiveness of the applicant's S-1 filing. The S-1 filing, in turn, is contingent on the SEC's approval of Form 19b-4.

However, Greyscale's efforts have gained attention as the company's first foray into bringing bitcoin to institutional investors through Bitcoin Trust. Grayscale fought hard to overturn the SEC's refusal to allow the trust to convert to a Bitcoin ETF.

CEO Michael Sonnenschein supports the approval of multiple ETFs at once, although Grayscale is a pioneer in the space. Any approved and job-ready applicant should be allowed to enter the market as soon as possible, he said.

“I think the SEC really needs to and wants to create a level playing field. As the Commission prepares to issue the necessary certifications for space products to enter the market, we have been public advocates that they should all be done at once.

Read more: How to prepare for a Bitcoin ETF: A step-by-step approach

Industry Reflects on Impact of Bitcoin Spot ETFs

The bad deadline drew mixed reactions from market players. If the SEC doesn't approve spot Bitcoin ETF applications, ETF investment adviser Nate Geracchi thinks a lawsuit could follow.

When asked about his opinion on whether the Bitcoin futures market is threatened by spot ETFs, ProShares' Simon Hyman insisted that the futures market is more well-regulated and risk-free. Crypto investment provider Matrixport may have been the main reason for the Bitcoin selloff yesterday after it released a report that downplayed the chances of EFF approval on political issues.

Read more: Where to Trade Bitcoin Futures: A Comprehensive Guide

Brian Kelly, founder and CEO of BKCM LLC, said a sell-off was inevitable after ETF excitement reached a fever pitch. Speaking on CNBC this week, Kelly said:

“I think a lot of speculative fever around ETFs is probably coming to a head this week. So, yes, we can get a sales charge. But I think… it's going to be a flood to buy, because remember, there are still a lot of people who haven't been able to buy bitcoins for their portfolios.

Do you have anything to say about the latest developments regarding Spot Bitcoin ETF approvals or anything else? Please write to us or join the conversation on our Telegram channel. You can also find us on TikTok, Facebook or X (Twitter).