YEREVAN (CoinChapter.com) — The US Securities and Exchange Commission (SEC), currently led by Gary Gensler, is notorious for its skepticism and opposition towards spot Bitcoin ETFs (Exchange-Traded Funds).
Anyone following the crypto industry has seen the SEC repeatedly reject applications for such products. Its most recent denial of VanEck’s attempt to launch a spot Bitcoin ETF is a good case in point.
The SEC has cited consumer protection as the basis for its continuous rejections. Because the Bitcoin market can be easily manipulated, an ETF that tracks its spot price can be risky.
Despite the stiff opposition, there is growing speculation and optimism about the potential approval of a Bitcoin spot ETF soon.
Spot Bitcoin ETF by January 2024 — Analyst
The deadline for approving a spot BTC ETF is fast approaching. As he indicated in his recent post on X, applications submitted by Hashdex and Franklin have a deadline of Nov. 17. Moreover, the Global X ETF application deadline is Nov. 21.
Bloomberg analyst James Seyffart believes that the SEC will implement its delaying tactics but will eventually approve it.
“Okay, we’re nearing in on deadline dates for 3 spot Bitcoin ETF applications. I want to get ahead of it because there’s a pretty good chance we’ll see delay orders from the SEC. Delays WOULD NOT change anything about our views & 90% odds for 19b-4 approval by Jan. 10, 2024,”he predicts.
Some of these positive speculations stem from the SEC’s recent decision not to contest Grayscale’s Bitcoin ETF lawsuit. Many have interpreted this decision as a sign that the SEC may be having a change of heart.
Bitcoin (BTC) hit $68,789 on Nov. 10, 2021. Approval of a spot Bitcoin ETF by Gensler’s team will significantly boost the token’s accessibility to investors. It could trigger a new all-time high in its price during the next bullish cycle.
Earlier, ARK Invest CEO Cathie Wood voiced her conviction in eventually approving a spot Bitcoin ETF. She believes an approval could take the cryptocurrency market cap from its current level to a $25 trillion opportunity by 2030.
Her company’s application for a Spot Bitcoin ETF is just one of a dozen that the SEC is currently reviewing. Others include BlackRock, Fidelity, Grayscale, and Wisdomtree.
In September, US Representatives Mike Flood, Tom Emmer, Ritchie Torres, and Wiley Nickel addressed a letter to Gensler demanding that he approves a Spot Bitcoin ETF. The letter also hinted at possible discrimination by the agency against the industry.
Will the SEC meet the growing demand and approve a spot BTF ETF by January 2024? Possibly. However, knowing Gensler, one shouldn’t be overly optimistic.