Bitcoin ETF review: Potential delays

The most recent information on the Bitcoin ETF is that, after receiving SEC approval, there may be a delay in debut. The US SEC has received applications for a spot ETF on Bitcoin from a total of 12 fund managers, and the first round of SEC review started yesterday.

Furthermore, the SEC may approve all 12 spot ETFs on Bitcoin within the eight-day window between November 9 and November 17, according to Bloomberg ETF experts James Seyffart and Eric Balchunas.

Prospects and delays for Bitcoin ETFs: an examination of SEC approval

Analysts point out that even if the US Securities and Exchange Commission (SEC) approves the spot ETF on Bitcoin, the real launch will happen approximately one month later. This is due to the opening of the window for SEC approval.

Should the SEC approve, the lengthy two-step ETF launch process is the reason for the anticipated launch delay.

In fact, an issuer needs to have SEC permission from the Trading and Markets Division for their 19b-4 filing and the Corporate Finance Division for their S-1 prospectus in order to create an ETF on Bitcoin.

Corporate Finance prioritises risk disclosure and fund transaction data. Nine of the twelve Bitcoin ETF applicants have filed amended prospectuses proving they have engaged with Corporate Finance.

Experts expect that the Bitcoin ETF may be delayed if the SEC authorises 19b-4 petitions before the prospectus materials are completed.

Bloomberg ETF analyst James Seyffart predicts that S-1 may take weeks or months to start even if 19b-4 is approved.

From November 8 to November 17, the SEC has eight days to approve the first spot ETF on Bitcoin.

Industry experts put the chances of acceptance at 90%, but they predict it will take some time—possibly until the first quarter of 2019—for approval to become official.

Remember that the SEC had earlier extended the consultation period’s deadline for comments on the Bitcoin spot ETF to November 8th.

We also remember that when BlackRock, the largest asset manager in the world, submitted their application, the rush to Bitcoin ETFs in the US started.

While Fidelity and other asset managers have applied for Bitcoin ETFs as well, the majority of them have either been rejected or have withdrawn.

Many market watchers have estimated the likelihood of the Bitcoin ETF’s acceptance at 90% based on the 2023–2024 cycle.

SEC is debating whether to approve all 12 Bitcoin ETFs

Within the next eight days, the US Securities and Exchange Commission may, as expected, approve all twelve of the pending spot exchange traded fund (ETF) applications on Bitcoin (BTC).

James Seyffart and Eric Balchunas, Bloomberg ETF experts, claim that the SEC has until November 17 to examine and approve all 12 spot ETF paperwork on Bitcoin, including Grayscale’s conversion of the GBTC trust product. The deadline begins on November 9 in the US.

They emphasise that this is just a possibility, though. Seyffart specifically stated that the SEC has concurrently granted delay orders for a set of applications from Bitwise, VanEck, BlackRock, Invesco, Fidelity, and Valkyrie.

Following Grayscale’s court victory confirmation, Seyffart stated on X (previously Twitter) on November 8th, saying, “This is the first available window.”

This brief timeframe was necessitated by the SEC’s comment period deadline of November 8th on a series of outstanding documents pertaining to spot ETFs on Bitcoin.

The approval or rejection of these applications won’t happen until at least November 23, even though the comment period for three filings—the Global X Bitcoin Trust, Hashdex Bitcoin ETF, and Franklin Bitcoin ETF—will reopen on November 17.

While the 12 documents must be accepted by November 17th, according to Seyffart, the SEC may make technical conclusions on nine of the 12 applications by January 10th.

Furthermore, while acceptance of a spot ETF on Bitcoin is not assured, Seyffart and Balchunas estimate that by January 10 of the next year, there is a 90% chance of approval.

Grayscale and the SEC are negotiating for GBTC to become an ETF on Bitcoin

Grayscale, a well-known cryptocurrency manager, has reportedly started talking to the Securities and Exchange Commission (SEC) about turning its GBTC trust product into a spot ETF on Bitcoin, according to a report published by CoinDesk today.

After winning a court battle against the regulator on August 29, Grayscale contacted the SEC’s Division of Trading and Markets and Division of Corporate Finance, according to people familiar with the matter.

We stress that, with Bitcoin up more than 30% over the last three months, market optimism has surged along with the anticipated likelihood of an ETF on the cryptocurrency rising.

Other significant assets have also benefited from this boom. In fact, because of scalability improvements, Solana (SOL) has increased by an astounding 93% in the last month, while Ether (ETH) and Ripple (XRP) have increased by 20% and 36%, respectively.

While a number of industry insiders are optimistic about an endorsement that would signal the beginning of a bull market, several analysts are sceptical that this kind of spike will endure.