Bitcoin: Spot ETF trading will open upon approval, SEC finally sheds light!

The SEC is set to make a much-anticipated decision this week on cash-settled Bitcoin ETF applications. Approval seems very close, yet remains elusive. If given the green light, ETFs could start trading as soon as the next business day.

Spot Bitcoin ETF Trading to Begin Swiftly After Approval

The battle to launch the first Spot Bitcoin ETF has been ongoing for years. A dozen players are in the running to market these exchange-traded index funds backed by Bitcoin. In the face of this flurry of requests, the Securities and Exchange Commission (SEC) has so far rejected each one, citing risks to investors.

However, the tide may turn this week. After losing a lawsuit initiated by Grayscale in August, the American securities watchdog appears ready to approve such products. Part of the crypto ecosystem is thus holding its breath in anticipation of an imminent decision.

If cash-settled Bitcoin ETFs were indeed to emerge, they could technically be launched on the next stock market day following their approval. This was confirmed by Bloomberg today, establishing the necessary steps for their rollout. 

The SEC must first validate two types of documents: the 19b-4 forms filed by the exchanges to list the funds, as well as the S-1 prospectuses from issuers like Fidelity detailing the operational conditions.

The exchanges have done their part by submitting the 19b-4 forms last week. The ball is now in the SEC’s court. Once these validations are obtained, nothing would stand in the way of the immediate availability of cash-settled Bitcoin ETFs on the markets.

Establishing a precise date, as hypothetical as it may be, has revived enthusiasm and impatience among investors. The Holy Grail seems within reach. All that’s missing is the SEC’s final blessing, which is keeping the suspense going.

D-Day Known, SEC Still Silent!

For now, this decisive approval from the US securities authorities is still being awaited. The SEC is due to make a decision on a dozen cash ETF applications before January 10th. But its deafening silence is beginning to irritate industry players, who were speculating on an announcement as early as this week.

Some observers believe that the institution is deliberately taking its time, seeking to buy time before having to make a decision. Yet the exchanges and the candidate financial firms have not lost hope. All have resubmitted their regulatory forms, in anticipation of an imminent green light.

The approval of cash-settled Bitcoin ETFs is seen as a major catalyst for crypto. It would attract billions of dollars in institutional investments, boosting adoption and credibility. Hence the market’s feverish impatience as the deadline approaches.

A potential launch date is thus set for the future cash-settled Bitcoin ETFs: the day after their regulatory approval. But it is still being awaited, with the SEC keeping the suspenseat its maximum until the last moment. The historic stakes surrounding these financial products have never been so high.