Spot bitcoin ETFs may be on the horizon, according to a recent report from Reuters. The US Securities and Exchange Commission is reportedly working with asset managers to finalize “key technical details” for potential spot bitcoin ETFs.
Ophelia Snyder, president of 21Shares, noted that the regulator engagement felt different from previous interactions and that the applicants are in a “pattern break.” 21Shares, along with Ark Invest, is one of the 13 spot bitcoin ETF applicants currently in the running.
The SEC has been in discussions with the firms regarding various details in the applications, including surveillance-sharing agreements, with many applicants naming Coinbase. The majority of applicants have also chosen Coinbase as a custodian for their ETFs.
Amendments to the applications have been steadily pouring in, despite the SEC’s continued delays in making a decision on the ETF hopefuls.
Experts in the ETF industry have noted that the amendments are a positive sign for the potential approval of the spot bitcoin ETFs.
Bloomberg Intelligence analyst James Seyffart believes that if the SEC is looking to approve the applications, a wave of acceptances could take place between Jan. 8 and Jan. 10, with Ark and 21Shares’ bitcoin ETF proposal having a Jan. 10 deadline.
The approvals may be “lined up” so that the SEC can greenlight multiple applications at once, a scenario that has been dubbed the “Bitcointucky Derby.”
Furthermore, the odds of approval by Jan. 10 are estimated to be around 90%, according to Bloomberg Intelligence analysts.
Cathie Wood, CEO of Ark Invest, is also optimistic about the potential approval of bitcoin ETFs, noting that there are significant differences in this round of the spot process compared to previous rounds.
In addition to Ark and 21Shares, other companies such as BlackRock, Franklin Templeton, WisdomTree, and VanEck have also entered the race for a spot bitcoin ETF.
The potential approval of spot bitcoin ETFs could mark a significant development in the world of cryptocurrency trading, providing a new avenue for investors to gain exposure to the digital asset. If approved, spot bitcoin ETFs would represent a historic milestone in the acceptance of cryptocurrency as a legitimate investment vehicle within traditional financial markets.
