The US Securities and Exchange Commission may approve a spot bitcoin ETF, according to recent speculation that shook the digital asset market. Due to these speculations, bitcoin rose more than 6% on the second day of 2024, surpassing $45,000 for the first time since early April 2022.
The excitement surrounding the approval of the ETF suggested that bitcoin will soon be institutionally and widely accepted, which in turn spurred an increase in buying sentiment among traders and investors.
Predictions that the SEC will approve the introduction of many spot bitcoin ETFs appear to be driving the rally, as they have been doing for the past few weeks.
SEC Decision on bitcoin ETF Approvals Uncertain
According to a Reuters article published over the weekend, the regulator could begin informing ETF sponsors that their applications would be accepted as soon as Tuesday, January 2.
FOX Business' Eleanor Terrett provided comment on the situation via X, formerly known as Twitter. She highlighted the erratic nature of the SEC's decision-making procedure.
“While the SEC is undoubtedly unexpected, I would be surprised if the approvals materialized tomorrow,” he said.
While the @SECGov It's surely unpredictable, I would be surprised if approvals happen tomorrow.
From what I understand through conversations I've had with issuers, the SEC has yet to review all of the changes made to the S-1s filed on Thursday/Friday AND comment on… https://t.co/CnkYdXsbD4
-Eleanor Terrett (@EleanorTerrett) January 1, 2024
Terrett said the SEC should evaluate and comment on changes made to the S-1s filed Thursday and Friday, based on its conversations with issuers. Cryptocurrency analyst Scott Melker had speculated about an approval later today, to which this comment was a response.
Terrett said that after this review phase, the SEC may notify the issuer of the final filing date of the Form S-1, and that notification may become effective within the next 24 to 48 hours.
btc market cap currently at $897.742 billion. Chart: TradingView.com
Yesterday, Melker, among others, spread the idea that the SEC would approve the first bitcoin ETF in the US as early as January 2nd. He wrote:
“ETF approval tomorrow?”, in X. That's the rumor.
ETF approval tomorrow? That's the rumor…
– The wolf of all the streets (@scottmelker) January 1, 2024
Reacting to Melker's conjecture, Terrett emphasized the short term, taking into account the recent SEC staff vacation, and drew comparisons to the ethereum futures approval procedure in October last year.
SEC Staff Departure Casts Questions on bitcoin ETF Approval Timing
Even a confirmation on Tuesday or Wednesday, according to Terrett, seems unlikely given that SEC staff members have been on leave since Friday. However, he continued to have a positive attitude and said:
“But we'll see! Whatever happens, the next two weeks will be exciting for cryptocurrencies.”
Adding to the discussion, FOX Business journalist Charles Gasparino revealed via Terrett's sources say the amount of paperwork the SEC still needs to complete makes an announcement likely toward the end of the week.
This statement alludes to a possible delay in publication and highlights the amount of work the SEC is now managing.
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