The U.S. Securities and Exchange Commission (SEC) is on the verge of a crucial decision regarding crypto, and the crypto community is eagerly awaiting the approval of spot Bitcoin exchange-traded fund (ETF) applications.
With a deadline of Nov. 17, the SEC is currently evaluating twelve applications, including Grayscale’s GBTC trust product conversion.
Will the SEC Approve a Spot BTC ETF?
The decision on a spot Bitcoin ETF is highly anticipated, but not guaranteed, as concerns around market manipulation and regulatory oversight continue to be major factors.
The SEC has expressed concerns about asset safety and custody, as well as the ability of trading venues to handle increased volume resulting from a spot ETF.
The SEC has until Nov. 17 to approve the first spot Bitcoin ETF, with a 90% chance of approval by Jan. 10, 2024 if not approved in this period, according to Bloomberg analysts.
In June, BlackRock’s filing for a spot Bitcoin ETF reignited interest in the approval process, prompting other issuers to file similar applications.
The SEC has raised reservations about the clarity and information provided in the applications for a spot Bitcoin ETF, but market analysts are closely monitoring the regulatory developments and potential implications for the crypto market.
Schiff Predicts Market Dip
Euro Pacific Capital CEO Peter Schiff has warned of a potential market crash as Bitcoin approaches $38,000 and potential spot Bitcoin ETF approvals loom.
Schiff anticipates that the launch of a Bitcoin ETF could lead to a market downturn as early buyers seek to sell for a profit, leaving a scarcity of buyers for the ETF.
However, Schiff’s forecast has been met with opposition from cryptocurrency investors who caution against relying on his prediction.
