According to Steven Schoenfield, a former director at #BlackRock , it is anticipated that the Securities and Exchange Commission (SEC) would provide approval for a Bitcoin exchange-traded fund (ETF) in the near future, namely within a timeframe of three to six months.
According to Eric Balchunas, an #ETF analyst at Bloomberg, the clearance of all applications has been postponed until January.
The discount on the Grayscale #bitcoin Trust reduced by an additional 4% over the current week, in anticipation of the impending approval deadline on October 13th.
The clearance delay by the Securities and Exchange Commission (SEC) regarding Bitcoin spot ETFs has generated significant discussion among the cryptocurrency community. Nevertheless, as per the assertions made by the former managing director of BlackRock, there is a possibility of an imminent improvement in the situation.
It is anticipated that approval for Bitcoin spot exchange-traded funds (ETFs) would be granted by April 2024.
Steven Schoenfield, a former executive at BlackRock, the largest asset management business globally, has provided an estimation of the potential approval timeline for the recent filings of Bitcoin spot exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC). Based on Schoenfield's analysis, it is anticipated that the regulatory authority will require an additional "three to six months" before any submission becomes publicly available.
During a panel discussion, the former managing director made an observation that, despite the possibility of a delay in the decision-making process by the SEC, it is probable that all the files would be approved simultaneously. This measure would be implemented in order to prevent any candidate from gaining an initial competitive edge. According to Schoefield's proposed timeframe, the decision will be postponed until either January 2024 or, at the latest, April 2024.
In addition, it is worth noting that the aforementioned timetable proposed by Schoefield exhibits an optimistic perspective, projecting a potential improvement within a timeframe of nine to 12 months. This projection is based on the anticipated alteration in the behaviour of the Securities and Exchange Commission (SEC). Despite the postponement of the files, the Commission is actively fostering an open conversation and working with issuers to refine their submissions.
Moreover, the recent legal victory achieved by Grayscale in its lawsuit against the U.S. Securities and Exchange Commission (SEC) pertaining to the denial of its proposal to transform Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund (ETF) is contributing to the prevailing positive sentiment. Given the recent court ruling, it is likely that the Commission will be obligated to impartially provide approval for the conversion file. Consequently, it is plausible that additional applications for ETFs will also receive approval.
As per the analysis provided by Eric Balchunas, an ETF analyst at Bloomberg, the regulatory authority has now postponed its determinations about all spot ETFs until the month of January. It is anticipated that the Securities and Exchange Commission (SEC) would likely pursue an appeal against the court's ruling in the Grayscale litigation, with the prescribed time for such action being October 13.
The Grayscale Bitcoin Trust is now experiencing a sustained upward trajectory.
The Grayscale Bitcoin Trust (GBTC), a leading investment trust, has experienced significant growth over the past four months as discussions around Bitcoin spot ETFs have gained momentum. The reduction in the discount to the Net Asset Value (NAV) of Grayscale Bitcoin Trust has decreased from 44.03% in mid-June to 19.90% as of the current moment.
Despite investors experiencing financial losses, the shrinkage represents a noteworthy enhancement to their investment portfolios. The likelihood of GBTC's conversion into an ETF is expected to further enhance this development in the future.
