Insiders within the financial realm are echoing a sentiment of inevitability regarding the Bitcoin ETF approval. Eric Balchunas, who analyzes ETFs at Bloomberg, suggests that this approval might happen in the next four to six months. This timeline shows that there’s uncertainty about when exactly this approval might occur.
The idea is becoming stronger because of information gathered from an earnings call. During the call, Mike Novogratz, who is the CEO of Galaxy Digital, mentioned that he has connections with BlackRock and Invesco. Novogratz confidently stated that the issue of whether a Bitcoin ETF will be approved is not a matter of “if,” but a matter of “when.”
Balchunas, a senior ETF analyst at Bloomberg, believes the SEC could announce its decision in the next week. This is based on the usual 45-day response time after receiving applications.
Exploring the Potential Path to Bitcoin ETF Approval
A cautionary note comes from CNBC’s report, stating that the SEC has the right to extend this deadline for up to 240 days. If this extension happens, the decision might not come until January 10, 2024. This situation arises from an application made on May 15, 2023. This careful approach is similar to the SEC’s recent delay in deciding on an innovative ETF proposal related to tradable carbon allowances.
Balchunas smartly points out that similar procedures are being followed for spot Bitcoin ETFs. This raises the chance of similar delays happening. If this prediction comes true, it might lead to a similar situation for aspiring spot Bitcoin ETFs. Thereby, resembling the challenging path that carbon ETFs have faced.
Balchunas highlights the significant results of this situation in another tweet. He emphasizes the importance of a forthcoming battle for market influence. In this context, Cathie Wood, the CEO of Ark Invest, is quoted. She explains that since these ETFs mainly hold Bitcoin, they will lead to strong competition. This competition is expected to also focus heavily on marketing efforts, becoming a crucial and potentially forceful aspect of this situation.
In the past, the SEC has rejected all proposed spot Bitcoin ETF attempts. This was because they were worried about not having a “comprehensive surveillance-sharing agreement with a regulated market of significant size for spot bitcoin.” But, it’s important to mention that the SEC did approve Bitcoin ETF futures starting from June.
BlackRock’s Innovative Surveillance-Sharing System and the Prospects of Bitcoin ETF Approval
BlackRock’s entry into the application process stands out because it introduced a unique “surveillance-sharing” system. This system involves working with established exchanges like Nasdaq and Cboe.
In conclusion, the certainty of a Bitcoin ETF getting approved is supported by various views in the financial world. The expectation of this regulatory milestone comes with an understanding of the complex environment surrounding it. In this landscape, different players compete for attention in a market shaped by digital currency trends.
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