The U.S. Securities and Exchange Commission (SEC) is on the brink of approving a spot #bitcoin ETF after 10 years of failed applications.
Multiple asset managers have applied for permission to launch spot bitcoin ETFs since 2013, but the SEC has rejected them, arguing that the products could not be approved due to various concerns.
However, industry watchers and analysts are mixed on what will happen in the #crypto market if approval is granted.
Some of the key points to consider ahead of the decision include:
At least one of the more than a dozen current proposals is expected to be approved.
Gabor Gurbacs, the director of digital assets strategy at VanEck, predicts that a spot #etf will create "trillions in value" over the long term, but initial flows will be smaller than expected.
QCP Capital, a Singapore-based crypto trading firm, suggests that initial demand for the ETFs could be lower than anticipated, setting the stage for a potential sell-the-news scenario.
The SEC must approve the rule changes before the product can trade, with the Ark/21Shares #BTC Trust facing a deadline of January 10 for its filing.
Industry watchers and executives have argued that the SEC's August court loss to Grayscale Investments put more pressure on the regulator to approve.
Some analysts believe the SEC could delay the decision, while others are more optimistic about the approval date.
Overall, the SEC's decision on spot bitcoin ETFs is highly anticipated, with various outcomes being predicted by different industry watchers and #CoinClub .
