According to a recent K33 Research report, it’s highly likely that the SEC will greenlight spot Bitcoin ETFs in January, given the recent stream of updated S-1 filings from issuers like BlackRock. The report suggests ongoing progressive discussions between the SEC and issuers regarding the redemption model for these ETFs, setting the stage for potential approvals in the coming weeks.
The report highlights a shift by several issuers, including BlackRock and WisdomTree, towards a cash creation structure in their amended applications with the SEC. While these updates leave room for in-kind redemptions, the prevailing sentiment points towards a preference for cash creations. This model necessitates firms to hold the equivalent fiat value of the underlying Bitcoin offered through exchange-traded funds.
While there’s no precise timeline for SEC approval at present, industry experts anticipate a favorable decision by January 10. Interestingly, this coincides with the decision deadline for ARK Invest’s spot Bitcoin ETF, jointly filed with 21Shares.
The potential impact of a spot Bitcoin ETF on BTC’s price and the broader crypto market is a topic of debate among speculators. Some anticipate significant inflows into BTC, foreseeing a surge beyond its previous all-time high of $69,000. However, analysts at JPMorgan Chase have expressed a different perspective, suggesting that these ETFs might redirect capital already deployed in other Bitcoin operations and investment strategies.
As anticipation mounts for potential approval, the crypto market eagerly awaits the SEC’s decision and its subsequent impact on Bitcoin and the overall crypto landscape.
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