The US Securities and Exchange Commission (SEC) is intensifying discussions with asset managers about the possibility of approving a Bitcoin exchange-traded fund (ETF).
Recent filings reveal meetings between the SEC and Grayscale to discuss converting the Grayscale Bitcoin Trust into an ETF. The meeting takes place after a legal setback that previously prevented this conversion.
The SEC also met with representatives from BlackRock and Nasdaq, demonstrating that it is working extensively with managers before making a decision on the expected approval of the ETFs.
At the time of writing this article, Bitcoin is trading at $38,581, up 2.26% in the last 24 hours.
Bitcoin ETFs are expected to be approved in 2024
Currently, the SEC has not yet clearly defined whether or not it will approve Bitcoin ETFs, but market expectations are that such funds could be approved in the US early next year.
The committee has postponed decisions on several requests, This indicates that it can make a collective decision on all pending requests, i.e. approve several at the same time.
According to Bloomberg ETF experts, the chance of approval for these ETFs is 90%. In other words, the market is bullish and may have already priced in this approval, but there is still a small chance that it won’t happen.
Gary Gensler, chairman of the SEC, has expressed caution regarding cryptocurrencies. However, in recent public statements, he has been open to his team’s thoughts on a potential Bitcoin ETF.
At the same time, Grayscale strengthened its team by hiring John Hoffman, a former Invesco executive, to lead distribution and strategic partnerships, signaling the company’s readiness to launch its fund if approved.
What Happens to Bitcoin If ETFs Don’t Get Approved?
The scenario has had a positive impact on the cryptocurrency market, with the price of Bitcoin set to double in price by 2023. The digital coin, which traded at around US$15,600 early this year, surpassed US$38,000 this month, reflecting investor optimism over the adoption of ETFs.
Despite all the investor optimism, there is no guarantee that the SEC will approve spot Bitcoin ETFs in the US. Therefore, it is necessary to analyze and prepare for the worst-case scenario.
In any case, investors should take this possibility of rejection into account. After all, a market pullback could be a new entry opportunity, especially for those who are afraid to buy a possible top.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
