Why This Journalist Says Bitcoin ETF Approval Won’t Happen This Week

The anticipation surrounding the potential approval of a spot Bitcoin ETF by the US Securities and Exchange Commission (SEC) has sent shockwaves through the digital asset market. Recent speculations ignited a surge in Bitcoin prices, breaking beyond $45,000 for the first time since April 2022. However, the excitement may be premature, and here’s why.

SEC Decision On Bitcoin ETF Approvals Uncertain

According to a recent Reuters story, the SEC might begin informing ETF sponsors about the acceptance of their applications as early as Tuesday, January 2. Eleanor Terrett of FOX Business, however, expressed skepticism about the likelihood of approvals happening so swiftly.

  • Terrett highlighted the unpredictable nature of the SEC’s decision-making process.
  • She pointed out that the SEC still needs to review changes made to the S-1s filed on Thursday and Friday.
  • The journalist emphasized the necessity for the SEC to make comments on these changes before any approval.

“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 on…” – Eleanor Terrett (@EleanorTerrett) January 1, 2024

Critical Analysis of Speculation

Cryptocurrency analyst Scott Melker fueled speculation by suggesting a possible approval on January 2. However, Terrett responded by shedding light on the tight timeline, especially considering recent SEC staff vacations. She drew parallels with the Ethereum futures approval process in October of the previous year, emphasizing the challenges of a swift decision.

  • Terrett indicated that after the review phase, the SEC might notify issuers of the final submission date of the S-1 form.
  • Such notifications could take effect within the next 24 to 48 hours.

“ETF approval tomorrow? That’s the rumor…” – Scott Melker (@scottmelker) January 1, 2024

SEC Staff Leave Casts Doubt On Timing

Terrett further cast doubt on the timing of a confirmation, noting that SEC staff members have been on leave since Friday. Despite this, she remained optimistic about the coming weeks, describing them as exciting for the crypto community.

  • Even a confirmation on Tuesday or Wednesday seems improbable due to the ongoing SEC staff leave.
  • Charles Gasparino from FOX Business added to the uncertainty, stating that insiders at BlackRock anticipate a delay in the announcement towards the end of the week.

“Breaking re Bitcoin ETF: People at BlackRock say it’s radio silence from SEC; Terrett’s sources say the amount of paperwork the SEC still needs to go through make the announcement likely toward week’s end.” – Charles Gasparino

In conclusion, the cryptocurrency community eagerly awaits the SEC’s decision on the Bitcoin ETF, with uncertainty prevailing amid contrasting speculations. As the events unfold, the next two weeks promise to be intriguing for crypto enthusiasts, offering potential insights into the institutional acceptance of Bitcoin.

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