Aaryamann Shrivastava
FXStreet
- The ex-director of BlackRock, Steven Schoenfeld, stated that the SEC would likely approve spot Bitcoin ETF after “three to six months”.
- Per Bloomberg ETF analyst Eric Balchunas, all filings’ approvals are delayed till January.
- The Grayscale Bitcoin Trust discount contracted this week, ahead of the October 13 approval deadline.
Bitcoin spot ETFs have been the talk of the crypto town for weeks now, but the Securities and Exchange Commission’s (SEC) decision to delay their approval stands to be an issue. However, according to the former managing director of BlackRock, things might start looking up soon.
Bitcoin spot ETFs to be approved by April 2024
Steven Schoenfeld, the former executive of the world’s biggest asset management firm, BlackRock, has given an estimate as to when the recent Bitcoin spot ETF filings could be approved by the SEC. According to Schoenfeld, the regulatory body is likely going to take another “three to six months” before any filing sees the light of the day.
Speaking at a panel discussion, the former managing director noted that even though the SEC might delay its decision, it will likely approve all the filings at once. This would be done to ensure no applicant receives the first mover advantage. The timeline set out by Schoenfeld delays the decision to January 2024 or April 2024 at the most.
To add to that, this is Schoenfeld’s optimistic timeline, which improved over nine to 12 months owing to the change in SEC’s behavior. Despite delaying the filings, the Commission is maintaining an open dialogue, actively engaging with issuers to fine-tune their filings.
Furthermore, the recent win of Grayscale in its lawsuit against the SEC regarding the rejection of its request to convert Grayscale Bitcoin Trust (GBTC) into an ETF is adding to the optimism. Since the Commission is now compelled by the court to fairly approve the conversion filing, chances are other ETF applications will also be approved.
According to Bloomberg ETF analyst, Eric Balchunas, for now, the regulator has delayed its decisions on all spot ETFs until January. The next move by the SEC will probably be appealing the court’s decision in the Grayscale lawsuit, the deadline for which is set for October 13.
Here's latest table, altho I think all delayed now, I'm on road so can't update, but here's the need-to-know: 1) 10/13 is deadline for SEC to appeal Grayscale ruling 2) all spot filings basically delayed till Jan 3) SEC is actively engaging w issuers to fine-tune their filings https://t.co/3yC4GMS2Cx pic.twitter.com/GZ2dQnrjJG
— Eric Balchunas (@EricBalchunas) October 4, 2023
Grayscale Bitcoin Trust continues its uptrend
The premier trust of Grayscale, GBTC, has observed immense improvement in the past four months since the discourse surrounding Bitcoin spot ETFs first began. The discount to Grayscale Bitcoin Trust’s NAV (Net Asset Value) has contracted from 44.03% in mid-June to 19.90% at the time of writing.
Grayscale Bitcoin Trust discount to NAV
While investors are still at a loss, the contraction serves as a significant improvement to their portfolios. This improvement will likely continue as the likeliness of GBTC’s conversion into an ETF increases down the line.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Turn off Solana and win $400,000 - Solana Foundation executive announces offer
Solana has been touted as an Ethereum killer, but as with every blockchain in the crypto market, the network does not come without its fair share of issues. While many who get hacked or exploited deal with the issues after the fact, Solana intends to get a step ahead by making a very lucrative offer to white hat hackers.
Grayscale vs. SEC deadline: Commission faces a midnight Friday deadline to challenge August 29 loss
Grayscale Investments secured a resounding victory in its longstanding case against the US Securities and Exchange Commission in late August. The lawsuit started in October after the firm approached the D.C. Circuit Court pushing to have its Bitcoin Trust converted to an Exchange-traded fund.
Loom Network price hits strong weekly resistance after 32% surge as LOOM ranks high on Korea’s Upbit
Loom Network token is highly bullish, passing as a rather lucrative investment for scalping traders, buying and selling the asset within a short period to make small profits.
Voyager founder charged by CFTC for fraud and by FTC for misleading investors that lost $1 billion
Voyager was among the first crypto companies to collapse and file for bankruptcy in 2022. While the platform has been making efforts to return its customers' assets since then, it looks like the regulatory bodies are not willing to be patient.
Bitcoin: Can BTC bears challenge crypto’s 2023 bull rally?
Bitcoin (BTC) price is at a critical juncture in the weekly time frame, where bulls and bears are battling for control. However, a multi-time-frame analysis shows that BTC is bullish daily and is likely to rally higher.