Get ready for potential fireworks in the crypto world as Nate Geraci, the dynamic President of the ETF Store and the lively host of the ETF Prime podcast, has illuminated a pivotal moment in the journey towards the approval of spot Bitcoin Exchange-Traded Funds (ETFs) by none other than the esteemed US Securities and Exchange Commission (SEC). In a recent revelation echoing the sentiments of Bloomberg analyst James Seyffart, Geraci’s post on X today has put the spotlight on a thrilling opportunity for the SEC to greenlight 19b-4 approval orders for a batch of spot Bitcoin ETFs, and guess what? The clock is ticking with the deadline set for Friday, November 17!
Spot Bitcoin ETF Approval
A Real Possibility This Week! In an electrifying update, Geraci exclaimed, “The spot Bitcoin ETF watch continues! Bloomberg’s James Seyffart explains that a small window is now open where the SEC could issue 19b-4 approval orders.” Hold on to your hats because Geraci emphasized the widely shared belief that the SEC is leaning towards batch approving spot Bitcoin ETFs, a strategic move to sidestep any perception of favoritism in an already fiercely competitive market. “The consensus is that the SEC will batch approve spot Bitcoin ETFs because the agency wants to avoid being perceived as playing kingmaker in an extremely high stakes and absurdly competitive market,” highlighted Geraci with infectious enthusiasm.
The Time is Now!
Why is this time-sensitive window so crucial? Geraci broke it down, revealing that it precedes a phase where new filings from big players like Hashdex, Franklin Templeton, and Global X will enter a public comment period starting November 17th. This development is a game-changer, preventing their inclusion in any immediate batch approval process. “This window [to approve all 12 filings]will close on November 17th because that is when issuers who filed later than the others [Hashdex, Franklin Templeton, and Global X] … will enter a public comment period, at which point the SEC simply isn’t going to approve them until that period is over (early January),” explained Geraci, adding a sense of urgency to the narrative.
New Research note from me today. We still believe 90% chance by Jan 10 for spot #Bitcoin ETF approvals. But if it comes earlier we are entering a window where a wave of approval orders for all the current applicants *COULD* occur pic.twitter.com/u6dBva1ytD
— James Seyffart (@JSeyff) November 8, 2023
Clarifying the Road Ahead But wait, there’s more! Geraci made a crucial distinction between the 19b-4 approval orders and the SEC’s approval of each issuer’s registration statement. While the former is a procedural step paving the way for ETFs to list and trade, the latter holds more weight in determining the actual launch of these ETFs. “The SEC would still need to approve each issuer’s registration statement (S-1, or S-3 in Grayscale’s case), which is much more important to actual launch timing and likely to come at a later date,” Geraci elaborated with palpable excitement.
Adding Another Layer of Intrigue
And just when you thought it couldn’t get more thrilling, Geraci tossed in another element to consider – the possibility of a government shutdown later this week. Talk about keeping us on the edge of our seats!
In the spirit of unraveling the unfolding drama, Bitcoin pundit Alessandro Ottaviani chimed in, providing additional context and highlighting the critical dates in the SEC’s decision-making process. “Till Nov 17, we are in the 8-day window where SEC could approve them all (12). Nov 17 is the deadline for the latest two applications (Hashdex and Franklin Templeton), and Nov 21 for the 10th ETF application (Global X),” shared Ottaviani, intensifying the anticipation.
Buckle up, crypto enthusiasts, because the week ahead might just be the one we’ve all been waiting for!