Anonymous sources say BlackRock is optimistic about SEC clearance for their spot Bitcoin ETF by January due to historically high approval rates.
Crypto news: Anonymous sources at Fox Business claim that BlackRock is growing more optimistic that the SEC will approve their spot Bitcoin ETF by January.
Since the chances of approval have been looking good for a while, any additional increase in these odds indicates that the level of confidence is now extremely high.
Furthermore, BlackRock has approved these petitions more than 99% of the time in the past, so a refusal at this point would appear improbable.
Crypto news: BlackRock’s Bitcoin ETF deadline is in January
The final date by which the SEC is obligated to provide information is, theoretically, January 10, 2024.
There are a few things that should be made clear, though.
First off, 21Shares and ARK’s applications, not BlackRock’s, are the ones that are due on this date. It must be acknowledged, nevertheless, that the SEC is unlikely to grant or deny each of the multiple requests one at a time.
If SEC decides to approve only the 21Shares and ARK application by January 10th, this ETF will actually have a major advantage over the others.
It is assumed that the SEC chooses to approve all applications that meet all conditions in order to avoid favouring any specific applicant.
The actual deadline is thus January 10, 2024, unless the SEC chooses to deny 21Shares and ARK’s application. However, given that the agency has given the applicants input on how to make the application itself more acceptable, this scenario doesn’t seem realistic.
The SEC may make a decision prior to the deadline, which is the second clarification.
To be honest, in the past, the verdict in these instances has typically taken as long as it takes, but over the past several days, there has been an opportunity for potential approval, which is open until November 17.
Certain subject-matter experts predict that clearance might happen as soon as late December, or early January at the latest.
Crypto news: BlackRock wants to offer an ETF for bitcoin
BlackRock appears to have the best chance of being granted out of all the requests for the issuance of an ETF on Bitcoin in the U.S. markets.
In theory, the SEC would have to respond to this application by March 15, 2024. However, if it approves 21Shares and ARK’s proposal by January 10, that approval should theoretically coincide with the approval of BlackRock’s application.
It should be noted that BlackRock’s ETF is, in reality, issued by iShares; it is known as the iShares Bitcoin Trust and trades on the exchange under the ticker symbol IBTC.
The rumours that Fox Business received in confidence from anonymous sources support the expectations that the SEC will make a decision on 21Shares and ARK’s application before January 10th. Naturally, they would also support the notion that the SEC will proceed with a mass approval.
This implies that numerous more applications may possibly be accepted by January in addition to these two.
But since it has the best chance of succeeding, BlackRock’s ETF is unquestionably the most intriguing.
How it affects Bitcoin
It’s important to remember that spot Bitcoin ETFs require BTC as collateral.
This implies that the managers of these funds will be increasingly compelled to purchase Bitcoin in the open market and lock it in cold wallets the more shares of these ETFs are issued and traded in the primary market.
This dynamic will essentially reduce the supply of BTC by draining it from the cryptocurrency markets.
Furthermore, the premium for miners will be halved in April of next year with the fourth halving of Bitcoin.
Halving will also result in a decrease in the amount of Bitcoin available in the cryptocurrency markets, as a portion of the cryptocurrency is the BTC that miners profit from and sell to pay for the exorbitant costs they are compelled to incur.
To be clear, none of this proves beyond a reasonable doubt that there will be less Bitcoin available on all cryptocurrency marketplaces in 2024, but it does raise the likelihood that it will.
The price could only go up if demand did not decrease correspondingly but instead stayed constant or even increased.
ETF for Ethereum
According to reports from yesterday, BlackRock has submitted an application to the SEC to establish an ETF on spot ETH as well.
Ethereum’s price surged right away, hitting annual highs once more and leading to a notable rise in trading volumes.
The average cost of petrol really increased to 270 gwei, briefly reaching levels not seen since June 2022.
A gwei is merely a billionth of an Ethereum, and its purpose is to accurately represent transaction fees or gas prices.
When transaction expenses are expressed in dollars, yesterday’s daily average exceeded $10, with peaks reaching $30. It was $7 the day before, and $6 the day before that.
It should be noted, nevertheless, that they have been rising since October 23, most likely as a result of ETH’s price increase. In actuality, they had already increased to $5 on October 24.
Stated differently, the explosive revelation from yesterday continued the already positive trend, which allowed ETH to reach its yearly highs.
