- Nate Geraci, President of the ETF Store, highlights a crucial period for potential approval of spot Bitcoin ETFs by the SEC, with decisions expected by November 17.
- The approval process is complicated by upcoming public comment periods for newer filings, adding a time-sensitive aspect to the current batch of applications.
Nate Geraci, a notable figure in the Exchange-Traded Fund (ETF) sector and host of the ETF Prime podcast, has shed light on a pivotal moment for the approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC). According to insights from Bloomberg analyst James Seyffart, shared by Geraci, there exists a limited timeframe until November 17 for the SEC to issue 19b-4 approval orders for a group of spot Bitcoin ETFs.
A Narrow Window for Approval
This week may be crucial for the cryptocurrency market, with the SEC facing a narrow window to issue approvals for a batch of spot Bitcoin ETFs. The significance of batch approval lies in the SEC’s intent to avoid showing favoritism in a highly competitive market. Geraci explains,
“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.”
The urgency is compounded by the fact that newer filings by issuers like Hashdex, Franklin Templeton, and Global X will enter public comment periods starting November 17, potentially excluding them from immediate batch approval.
Understanding the Approval Process
Geraci clarifies the nuances of the approval process, distinguishing between the 19b-4 approval orders and the SEC’s approval of each issuer’s registration statement. The 19b-4 orders are procedural, enabling ETFs to list and trade, while the registration statement approvals are more critical for the actual launch of these ETFs.
Adding to the complexity is the possibility of a government shutdown later this week, which could influence the approval timeline. Geraci notes,
“Another factor to consider here is a possible government shutdown later this week…,”
introducing another element of uncertainty to the process.
Implications and Deadlines
If the SEC opts to delay these filings, January 10, 2024, emerges as the next significant deadline, by which a decision on Ark Invest’s spot Bitcoin ETF application must be made. However, as Bitcoinist reported, the SEC could approve the other nine ETF filings anytime between now and January 10, aligning with its strategy to avoid favoritism.
As of now, Bitcoin trades at $36,932, with the cryptocurrency community closely watching these developments, which could potentially have significant impacts on the market and further legitimize Bitcoin in the eyes of traditional investors.