Nate Geraci, the president of The ETF Store, has raised hope around the imminent approval of the first spot Bitcoin exchange-traded fund (ETF) in the United States.
Citing Bloomberg ETF analyst James Seyffart, Geraci stated that the United States Securities and Exchange Commission (SEC) has a small window to approve multiple spot bitcoin ETF applications this week.
“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,” he said.
Geraci: SEC Could Approve Spot Bitcoin ETFs This Week
According to Geraci, issuing 19b-4 approval orders during this current window would help keep the SEC on the path towards batching up all existing spot Bitcoin ETF filings to launch simultaneously.
He mentioned the SEC will batch approve all spot bitcoin ETFs because it wants to avoid showing favoritism in the market.
As stated by Geraci, the current window, which could allow the issuance of 19b-4 approval orders, will close on November 17, as several applicants filed later than others. He further noted that these later filings will enter a public comment period, and the SEC will not approve them until that period is over (early January).
As a result, the SEC will not be able to include these issuers in any batch approval process, he said.
Actual Launch Timing
Meanwhile, Geraci explained that the 19b-4 approval order is only a step towards launching a spot Bitcoin ETF as it will only allow issuers to list and trade their products on their respective exchanges. He mentioned that the SEC would still need to approve each issuer’s registration statement before they could launch their spot Bitcoin 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,” he said.
There are currently 12 spot Bitcoin ETF applications filed with the SEC as of November 13, 2023. These applications come from prominent asset managers, including BlackRock, Grayscale, Valkyrie, WisdomTree, and more.
