ETF Deadline is Approaching and SEC Got Engaged with Paperwork 

BlackRock, an asset management firm grappling for approval of a Bitcoin ETF, reports that they are not hearing from the SEC. The deadline for the spot Bitcoin exchange-traded fund (ETF) approaches on January 10. The U.S. regulatory is reportedly swamped with paperwork.

As the date of decision on Bitcoin ETF approaches the SEC faces a growing workload. BlackRock has not received any communications from them that suggest the pending work.

The U.S. Securities and Exchange Commission is expected to inform applicants on Tuesday, January 2, or Wednesday, January 3 about the clearance to launch a Bitcoin exchange-traded fund (ETF). If allowed, this would give the applicants time to prepare for the potential launch on January 10.

What Do Analysts Express?

Eleanor Terrett from Fox Business comments 

“People at BlackRock say it’s radio silence from the SEC, Eleanor Terrett’s sources say the amount of paperwork the SEC still needs to go through makes the announcement likely toward week’s end.”

She further comments that the potential Bitcoin ETF approvals in the next couple of days may face challenges. She stated “SEC staff has been off since Friday so a Tuesday or even a Wednesday approval seems tight. But we shall see,”

Terrett declares that she doubts that the Bitcoin ETF approval will happen tomorrow. She added, “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 them.”

Eric Balchunas, Bloomberg ETF analyst said “The SEC wants to reduce the number of thor parties involved in spot Bitcoin ETFs to make them a little more controllable.” As per Eric, many ETF applicants have updated their filings with the cash-create redemption model.

He said the SEC is not in favor of the involvement of third parties like broker-dealers. It means they need fewer intermediaries touching the Bitcoin.

How Will Bitcoin ETF Approval Impact?

The approval of Bitcoin ETF applications will have an impact on individual investors and establish a model for future financial products related to crypto. There are over ten Bitcoin ETF applications submitted from many industry giants, including Fidelity and Invesco.

It is the crucial step towards wider Bitcoin adoption. It is an important development in mainstream financial markets.

The cryptocurrency community is eagerly waiting for the approval of the ETF and today marks a significant deadline.

BlackRock, Fidelity, and Invesco, also crypto-focus firms Valkyrie and Bitwie, reveal the details like partnerships with important trading firms and the fees their prospective ETFs will charge customers if the SEC gives the green light.

Summary

It is expected that the SEC will drop the long matter ETF. More than a dozen firms are waiting to break into the new market by selling their version of investable products to investors, who would otherwise keep Bitcoin in their accounts alongside stocks and bonds.

However, the delay is expected from the SEC as BlackRock reported a silence from their side, which indicates a load of pending paperwork. 

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.