SEC Sets Deadline for Bitcoin ETF Applications, Possible Approval in 2024

Summary

-The U.S. Securities and Exchange Commission (SEC) is looking at end of year as a timeline for final changes to several proposed exchange-traded funds (ETFs) tied to spot bitcoin.
-Unnamed executives from major firms including BlackRock, Grayscale Investments, ARK Investments, and 21 Shares, suggested that the SEC might approve these ETFs in early 2024.
-If approved, these ETFs could significantly reshape the cryptocurrency landscape.
-The SEC now indicates a more accepting attitude towards bitcoin ETFs, a major evolution from its previous refusals over concerns of market manipulation.
-All amendments to ETF applications must be finalized by December 29th to be included in the first approval wave.
– The approval could lead to a series of Bitcoin ETF debuts, changing the cryptocurrency landscape drastically.

A Change in SEC’s Attitude

According to inside sources from major financial corporations like BlackRock, Grayscale Investments, ARK Investments, and 21 Shares, the U.S. Securities and Exchange Commission (SEC) has hinted at potential approval of ETFs linked to spot bitcoin in 2024. The SEC’s apparent change of stance follows previous refusals to acknowledge several applications for spot bitcoin ETFs, citing concerns about market manipulation.

The Development Journey

The shift in attitude by the SEC is likely influenced by a recent federal appeals court verdict favoring Grayscale’s ETF proposal. According to confidential sources within the involved firms, the regulator has slated December 29 for all applications to receive their final updates, ensuring that they are included in the first wave of approved spot bitcoin ETFs early next year.

Market Overview and Key Points

Reports indicate that the SEC’s evolving approach signifies a major shift in the market, potentially leading to the green light of Bitcoin ETF launches, therefore, revolutionizing the cryptocurrency landscape. Furthermore, the SEC’s willingness to consider spot bitcoin ETFs signals a major development in the cryptocurrency market. For years, the sector has longed for mainstream financial products pegged directly to bitcoin rather than futures contracts derivatives.

Looking Ahead

The deadline for making changes is crucial for these issuers as it would clear the path for the ETFs in 2024. In readiness, issuers have been reworking their filings, including arrangements for cash redemptions as required by the SEC. Other details Expected within the final updates are descriptions of fees and initial seeding capital for the ETFs.

Source: Quiver Quantitative

Should the ETFs receive regulatory green light, the forex market could see increased action as investors and traders realign their strategies, potentially leading to price fluctuations in related assets like Bitcoin.

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