The approval of a long-awaited spot bitcoin exchange-traded fund may not be far off, according to a series of discussions between the Securities and Exchange Commission and a few stock exchanges.
According to information obtained by FOX Business, representatives from the three main exchanges where the ETFs would trade—the New York Stock Exchange, Nasdaq, and Chicago Board Options Exchange—will be meeting with SEC staff attorneys from the Division of Trading and Markets on Wednesday.
According to people at the firms who asked not to be named, the talks are considered as a good indication that the SEC is getting close to approving some or all of the dozen applications by major money managers and crypto firms for the product.
The SEC is specifically requesting that the exchanges complete and update their so-called 19b-4 filings, which they filed on behalf of issuers and which need to be approved by the SEC for the ETF to be offered for sale to the general public.
Although a final judgment has not been reached, people familiar with the proceedings indicate that the SEC may start alerting issuers of approval on Friday, and trading may start as early as the next week. Even as the SEC continues to engage with important parties about the case, both ETF experts and issuers maintain their confidence that the SEC will make a positive ruling on or before January 10.
Naturally, the applications could be rejected by the SEC. The Singapore-based cryptocurrency platform Matrixport published a research note hours before FOX Business reported on Wednesday’s meetings, predicting that the SEC will reject all applications for spot bitcoin ETFs due to Chairman Gary Gensler’s reluctance to embrace cryptocurrency and the agency’s Democratic majority on the five-member commission.
Following that report, the price of bitcoin dropped more than 7%. On New Year’s Day, it had nearly reached a two-year high of $45,000 in anticipation of the approval of a spot ETF.
An SEC representative told FOX Business, “Generally speaking, if the Commission declares a registration statement effective, that is reflected on EDGAR.” “Any Commission 19b-4 orders will be posted on our website and then published in the Federal Register.”
Requests for response from press representatives of the NYSE, Nasdaq, and CBOE were not immediately answered.
Retail investors would get more exposure to the largest cryptocurrency in the world at a lower cost if approval happens compared to the bitcoin futures ETF that has already received permission.
Investing in an exchange-traded fund (ETF) via reputable and strictly regulated money management companies like Fidelity or BlackRock may also attract more investors to include Bitcoin in their holdings.