According to a recent report from Reuters, the US Securities and Exchange Commission (SEC) may notify asset managers seeking to launch a spot bitcoin ETF (exchange-traded fund) if their applications have been approved so soon like next week.
SEC will notify applicants of its decision next week: Reuters
Saturday December 30 Reuters reported that the SEC may notify the 14 bitcoin ETF applicants whether their applications will be approved by Tuesday or Wednesday of next week. This move would come ahead of the January 10 deadline for the agency to decide whether or not to greenlight Ark Invest and 21Shares' ETF application.
Citing people familiar with the process, Reuters highlighted that asset managers that met their year-end filing review deadlines could launch before Jan. 10, 2024. Some of the bitcoin-etf-on-deadline-day/” target=”_blank” rel=”nofollow”>Companies That Recently Updated Their bitcoin ETF SEC filings include Black Rock, Van Eck, Bitwise, WisdomTree, Invesco, Valkyrie and Fidelity.
Notably, Fidelity Investments revealed more information and technical details about its potential ETF product in its Form S-1 update. The asset management company hopes to outperform other applicants in winning over investors by offering the lowest sponsor fee of 0.39%.
Invesco announced a rate of 0.59% and offered a fee waiver on the first $5 billion in assets within the first six months after launch. Meanwhile, BlackRock, the world's largest asset manager and a pioneer in the bitcoin ETF race, introduced Jane Street Capital and JP Morgan Securities as its authorized participants in its updated application.
Based on the latest development, it appears that the SEC is looking to shut down the bitcoin ETF. chapter as soon as the new year arrives. However, the latest report from Reuters adds optimism to the possibility of the agency approving several ETF applications before January 10.
How bitcoin ETF Approval Could Affect Price
There has been widespread speculation about the possible effects of the ETF approval on the bitcoin asset. Options platform Greeks.live has offered insight into the exchange-traded fund's potential impact on the value of the leading cryptocurrency.
There is news in the market that the SEC will approve the bitcoin spot ETF application next Tuesday, but there was little volatility in the major forward IVs and price.
Looking at options data, Jan 12 IV options, which are strongly correlated with the ETF, fell… pic.twitter.com/f1B4ZPC05d– Griegos.live (@GreeksLive) December 31, 2023
Using options data, Greeks.live believes that the market has priced in the potential approval of the bitcoin ETF and may not lead to higher returns for the asset. This means that the market has already taken this information into account and any positive developments might not result in a significant price movement.
According to the platform, this reasoning is based on the low volatility observed in the implied volatilities (IV) of the main terms and in the price of bitcoin. For context, implied volatility reflects the market's expectation of how much an asset will move in the future.
However, the Jan. 12 option IV, which is believed to be strongly correlated with the bitcoin ETF, declined instead of rising. This lack of volatility and declining options implied volatility suggests that there may not be a substantial impact on the price of bitcoin, even with major news on the horizon.
At the time of writing, bitcoin is valued at $42,154, reflecting just 0.4% in the last day. The price of btc has risen more than 150% this year, partly due to the anticipation of a bitcoin Spot ETF.
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bitcoin price continues to move sideways on the daily timeframe | Source: BTCUSDT chart on TradingView
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