The years-long wait for the US approval of Bitcoin ETFs could come to an end on Wednesday. Asset manager Blackrock and the business media expect the “green light” for Bitcoin ETFs the day after tomorrow.
The signs for Bitcoin ETFs in the US seem positive: The US Securities and Exchange Commission (SEC) has requested final documents from several applicants and plans to vote on Wednesday, as reported by the news agency Reuters. The world’s largest asset manager BlackRock is also expecting a “green light” from the SEC for its Bitcoin ETF on Wednesday, according to FOX Business. A report by the business news agency Bloomberg goes in the same direction.
The respected business media base their forecasts on sources among Bitcoin ETF applicants and within the SEC. According to these sources, the authorities have signaled that the prospectuses for Bitcoin ETFs had to be amended in minor points over the weekend and will be submitted today, Monday. The SEC is then expected to make its decision on Tuesday or Wednesday. Experts consider January 10 to be the deadline because the SEC can then vote on the approval of several Bitcoin ETFs at the same time and thus avoid favoring one applicant.
The price curve of Bitcoin (BTC) reacted cautiously to the news about possible ETFs. The cryptocurrency is trading at around USD 44,000, roughly the same level as a month ago. It had already become apparent at the beginning of December that the negotiations on Bitcoin ETFs between the SEC and companies such as BlackRock and Grayscale were entering the final round.
BTC investors are hoping that Bitcoin ETFs will lead to a considerable inflow of capital and thus rising prices, as institutional investors could enter the market. Their eyes are on pension funds worth billions, for example. So far, only Bitcoin Future ETFs have been approved in the USA; the ETFs now expected are to reflect the spot price of BTC.
Conclusion: Bitcoin facing a rally through ETFs?
The SEC appears to be setting the course for Bitcoin ETFs, which it had rigorously rejected for almost a decade. But if this assumption comes true, the big question will be how much interest such Bitcoin ETFs will actually attract among investors. Advertising campaigns are said to have already been prepared and a trading launch for Bitcoin ETFs could even happen this week, according to reports. So let’s prepare ourselves for days in which optimism about Bitcoin ETFs is fulfilled or the SEC wants to spoil the fun after all.