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Fox Business Reporter Casts Doubt on Early January Spot Bitcoin ETF Approval

Summary:
Fox Business reporter Eleanor Terrett believes the sentiment surrounding a spot Bitcoin (BTC) ETF approval in early January is low. It’s worth noting, however, that despite Terrett’s perspective, a considerable number of analysts expect the approval of such products during the same period. SEC is Reviewing Changes to S-1 Filings In a post on X, Terrett highlighted that the Securities and Exchange Commission (SEC) is currently in the process of reviewing changes to the S-1 filings for spot Bitcoin ETFs. While the @SECGov is surely unpredictable, it would surprise me if approvals were to happen tomorrow. From what I understand through conversations I’ve had with issuers, the SEC still has to review all the changes made to the S-1s filed on Thursday/Friday AND make comments

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Fox Business reporter Eleanor Terrett believes the sentiment surrounding a spot Bitcoin (BTC) ETF approval in early January is low.

It’s worth noting, however, that despite Terrett’s perspective, a considerable number of analysts expect the approval of such products during the same period.

SEC is Reviewing Changes to S-1 Filings

In a post on X, Terrett highlighted that the Securities and Exchange Commission (SEC) is currently in the process of reviewing changes to the S-1 filings for spot Bitcoin ETFs.

Terrett mentioned the SEC is expected to inform issuers of the final Form S-1 filing date after completing this review, a notification that could come within the next 24 to 48 hours. The timeline aligns with the approval schedule observed for Ethereum (ETH) futures ETFs in October of the previous year.

The Fox Business reporter stated that a Tuesday or Wednesday approval seems tight, given that SEC staff has been off since Friday. However, she expressed anticipation for an exciting two weeks ahead.

Bitcoin ETF issuers have advanced discussions with the SEC, focusing on critical details. The regulator’s deadline for deciding on numerous applications is set for January.

As the deadline draws near, the price of BTC responded positively, experiencing growth and surpassing the $45,000 level, reaching a 21-month high not seen since early April 2022.

Spot Bitcoin ETF Approval

The SEC’s approval of the first Bitcoin futures ETF in October 2021 had initially raised expectations for a swift greenlight of spot exchange-traded funds. Still, the process did not unfold as quickly as anticipated. Following this, several money managers emerged as frontrunners in the race for approval, garnering significant media attention.

In June 2023, BlackRock, boasting over $9 trillion in assets under management and being the world’s largest money manager, applied as well. The application deviated from the norm by incorporating a surveillance-sharing agreement with Nasdaq, aiming to address concerns raised by the SEC.

Given BlackRock’s extensive experience with ETF products and having only faced one rejection in the past, industry observers are closely monitoring to see if their innovative approach proves successful.

After BlackRock’s submission, several other prominent investment management firms have followed suit, submitting spot Bitcoin ETF applications that mirror BlackRock’s model.

Some top companies in the queue for SEC approval include Grayscale, Valkyrie, Fidelity Investments, ARK Invest, WisdomTree, and Invesco.

The common requirement for these applications is the separation of custody and trading functions, a condition that, once met, could lead to the approval of a cluster of spot Bitcoin ETFs in quick succession or even simultaneously. However, predicting the timeline for this potential approval remains speculative at this point.

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