The launch of the Bitcoin ETF may be delayed for more than a month after the SEC approval
As the United States Securities and Exchange Commission's first window for approval of a spot Bitcoin ETF opens, analysts note that it will be a month before the SEC approves a spot Bitcoin (BTC) exchange-traded fund (ETF). The right start.
The expected delay in launch following SEC approval is the two-step process of launching an ETF. An issuer must obtain SEC approval from the Division of Commerce and Markets on a 19b-4 filing and from the Division of Corporate Finance on an S-1 filing or prospectus to launch a Bitcoin ETF.
The main focus of the Corporate Finance Division includes details of fund operations and risk disclosures. To date, out of 12 Bitcoin ETF applications, nine issuers have submitted updated prospectuses showing their involvement in corporate finance. Market analysts believe the launch of the Bitcoin ETF could be delayed before the SEC signs the prospectus documents for 19b-4 approvals.
Bloomberg EFF analyst James Seifert noted that even if 19b-4 is approved, S-1 approvals could take weeks or months between approval and launch.
What Scott said: There are two ways to complete an EFF launch. Even if 19b-4 is approved, S-1s still need to be signed by the Corp Fin division. No sign has been made yet. There could be weeks or even months between approval and launch, and probably pic.twitter.com/7OLj5HjSDy
— James Seyff (@JSeyff) November 8, 2023
There is an eight-day window for the SEC to approve the first Bitcoin ETF, starting on November 8 and ending on November 17. Although market analysts have raised the probability of approval to 90%, they believe approval will not come until early next year.
New research note from me today. We still believe a 90% chance of spot #Bitcoin ETF approvals by January 10th. But we're entering a window where there *could* be a wave of approvals for all current applicants if it comes early pic.twitter.com/u6dBva1ytD
— James Seyff (@JSeyff) November 8, 2023
The SEC previously extended the deadline for comments on the spot Bitcoin ETF until November 8.
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The space Bitcoin ETF race started in the US when the world's largest asset manager, BlackRock, filed its application. While Fidelity and a few other asset managers have submitted Bitcoin ETFs for the space, most have been rejected or withdrawn their applications.
The 2023–2024 cycle, however, has prompted many market analysts to predict that the spot ETF will be approved, giving it as much as a 90% chance.
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