Ahmed Ali Bernstein Research, an analytical arm of global asset management company Alliancebernstein, predicts that the U.S. Securities and Exchange Commission (SEC) will give the nod to the inaugural spot Bitcoin exchange-traded fund (ETF) by early January of 2024. According to a Bernstein Research memorandum sent to Thestreetcrypto, the likelihood of approval for a Bitcoin ETF by the January 10 deadline appears to be quite high.
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SEC’s January Approval for Spot Bitcoin ETF Seems Increasingly Probable
The memorandum from Bernstein Research underscores that market participants were initially keen to see if the SEC would challenge the ruling in favor of Grayscale Investments, the largest cryptocurrency asset manager. Grayscale aims to transform its Bitcoin trust (GBTC) into a spot Bitcoin ETF. Although the SEC had initially declined the application, a subsequent court decision mandated the regulatory body to reassess its initial judgment.
Given that the SEC has elected not to file an appeal against the court ruling and is instead actively engaging in dialogues, including providing comments and edits on ETF applications, Bernstein Research suggests that approval by the scheduled January 10 date is increasingly probable.
Multiple Applications Under SEC Review
SEC Chairman Gary Gensler has stated that the regulatory agency is currently reviewing between eight to ten spot Bitcoin ETF applications. Publicly accessible records indicate that there are 12 such applications awaiting SEC’s review, including Grayscale’s request to transform GBTC into a spot Bitcoin ETF.
The list of other applicants spans prominent financial companies such as ARK Investment Management led by Cathie Wood, Blackrock, Bitwise, Wisdomtree, Fidelity, Vaneck, and Invesco. Eight of these applications have the latest possible review dates falling within the first quarter of 2024, while three have their deadlines set for the second quarter of the year.
Expectation of Multiple Approvals
Some financial analysts, including those at JPMorgan, speculate that the SEC may approve multiple spot Bitcoin ETFs in a single sweep. Just last week, Bitcoin prices experienced a significant uptick amid speculation that Blackrock, the world’s largest asset manager, is on the verge of launching its own spot Bitcoin ETF.
We invite you to share your thoughts on whether the SEC will indeed approve its first spot Bitcoin ETF by January 2024 in the comments section below.
Frequently Asked Questions (FAQs) about Spot Bitcoin ETF Approval
What does Bernstein Research predict about the SEC’s stance on spot Bitcoin ETFs?
Bernstein Research, a subsidiary of Alliancebernstein, expects that the U.S. Securities and Exchange Commission (SEC) will approve its first spot Bitcoin exchange-traded fund (ETF) by early January 2024. The firm believes that the probability of such an approval by the January 10 due date is high.
What is the significance of the SEC not appealing against the Grayscale verdict?
The fact that the SEC chose not to appeal against the court’s decision in favor of Grayscale Investments is seen as a positive sign. It indicates that the SEC is open to reevaluating its initial rejection of Grayscale’s application to convert its Bitcoin trust into a spot Bitcoin ETF.
How many spot Bitcoin ETF applications are currently under SEC review?
According to SEC Chairman Gary Gensler, the SEC is currently reviewing between eight to ten spot Bitcoin ETF applications. Public records indicate that there are 12 such applications pending, including the one from Grayscale Investments.
Who are the other key applicants for a spot Bitcoin ETF aside from Grayscale?
Other applicants for a spot Bitcoin ETF include major financial firms such as ARK Investment Management, Blackrock, Bitwise, Wisdomtree, Fidelity, Vaneck, and Invesco.
Is there speculation about multiple approvals of spot Bitcoin ETFs?
Yes, some financial analysts, including those from JPMorgan, believe that the SEC may approve multiple spot Bitcoin ETFs simultaneously. This speculation gained traction especially after the price of Bitcoin surged last week on rumors that Blackrock is close to launching its own spot Bitcoin ETF.
When are the latest possible review dates for these applications?
Eight of the applications have the latest possible review dates set for the first quarter of 2024. Three applications have their final review dates set for the second quarter of the same year.
More about Spot Bitcoin ETF Approval
- SEC’s Official Statements on Bitcoin ETFs
- Bernstein Research Publications
- Court Ruling on Grayscale Investments
- Public Records of SEC Applications
- Gary Gensler’s Comments on Bitcoin ETFs
- JPMorgan’s Analysis on Bitcoin ETF Approvals
- Blackrock’s Investment Stance
7 comments
Huh, SEC not appealing against Grayscale? That’s like a green light if you ask me. fingers crossed people
Multiple approvals at once? That would be a game changer for the entire crypto market. No doubt.
Wow, finally some good news for crypto investors. If Bernstein’s right, January’s gonna be big for Bitcoin!
Why is everyone surprised? Gary Gensler has been hinting at this for a while. Just follow the man’s speeches and you’ll see.
idk guys, let’s not count our chickens before they hatch. SEC is a wild card, always has been.
Bernstein is reputable, but remember the market is volatile. This isn’t a sure bet, just more informed speculation.
Bernstein’s gotta have some insider info. No way they’d make a claim like that without something solid.