James SeyffartA top Bloomberg Intelligence research analyst has offered his opinion on the approval timeline for a bitcoin spot exchange-traded fund (ETF) and the implications of the product.
James Seyffart on bitcoin Spot ETF Approval Timeline
Members of the crypto community have been very curious about the bitcoin Spot ETF due to the growing anticipation surrounding it. One of the main questions that arises in the community is when they will begin operating on the open market if approved.
Bloomberg analyst James Seyffart shared his two cents on this recently: developer his optimism about the approval timeline for the btc spot ETF on X (formerly Twitter). Seyyfart highlighted in his post that both 19b-4 and S-1 fillers are crucial for a comprehensive product consideration.
In his opinion, getting authorization for the 19b-4 set of ETFs will not be too difficult. However, the challenging part is determining when the ETF can begin trading after approval.
Seyffart also stated that “there is no way to know for sure” when that will happen. However, he further estimated that it could take “one or two days for the negotiation to become operational after approval, or even weeks later.”
Additionally, regarding the S-1s, Seyffart has expressed a feeling of uncertainty regarding the applications. According to him, he is not sure if the ETFs according to the S-1 filings are ready for approval at this junction.
The analyst explained that the S-1s will be approved if only the United States Securities and Exchange Commission (SEC) approves it. He further added that if both 19b-4 and S-1 are approved, the gap between approval and launch will be small.
So far, Seyffart is confident that both sides can work out the details, given that companies like Hashdex and BlackRock meet with the SEC this week.
He stated:
That said, based on all of these meetings and new filings, I have to assume that both the issuers and the SEC are working hard to get things done.
Speculation of $100 billion inflows after approval
Along with the anticipation following a possible approval of a Spot bitcoin ETF, is the amount that could flow into ETFs. Noted mathematician Fred Krueger has highlighted a possible $100 billion influx into bitcoin if approved.
Krueger's projections caused quite a stir in the crypto community, leading to a response from Seyffart. The analyst has issued a public warning to investors warning them not to set expectations too high.
He stated that it is “extreme” to forecast this type of inflow, considering how long gold has been available. He went on to say that even though gold has been available in the US since 2004, its value in the country is currently $95 billion.
Featured image from iStock, chart from Tradingview.com
