January 3rd marked a significant day in the cryptocurrency world as the Securities and Exchange Commission (SEC) convened with key exchanges to discuss spot Bitcoin ETF applications. Amidst the buzz, speculations are rife about the imminent SEC decision on spot Bitcoin ETF. However, a recent report suggests that the anticipation might be met with disappointment.
When Can We Expect the SEC’s Bitcoin ETF Verdict?
The SEC’s meeting on January 3rd with leading exchanges was primarily to assess the spot Bitcoin ETF applications. Inside sources hint that the SEC could start informing the applicants about their approval status as early as January 5th. With January 10th around the corner, analysts and applicants in the Exchange Traded Fund (ETF) space are hopeful of a favorable decision from the SEC.
The SEC’s active engagement with significant stakeholders during the approval process for Bitcoin ETFs has further bolstered this optimism. According to an SEC spokesperson, any activation of a registration statement would be reflected in EDGAR, and all 19b-4 orders would be published on the SEC’s website and later in the Federal Register.
Is There Cause for Optimism?
Recent meetings at the SEC have sparked optimism among major money managers and crypto firms awaiting approval for eleven Bitcoin ETF applications. The SEC’s proactive communication with exchanges for reviewing and finalizing 19b-4 applications has added to the positive sentiment. However, the SEC’s power to reject applications introduces an element of uncertainty into the mix.
A research note from Singapore-based crypto platform Matrixport casts a shadow on this optimism. The note predicts a rejection of all spot Bitcoin ETF applications, pointing to factors such as the Democratic majority in the SEC’s five-member commission and Chairman Gary Gensler’s cautious stance on cryptocurrencies.
What’s the Impact on Bitcoin’s Price?
The Matrixport report resulted in Bitcoin’s price dipping to $40,000 on Wednesday. However, it has since partially recovered and is currently trading at $43,070, boasting a market capitalization of $843 billion. Bitcoin’s price has been lingering around $43,000 for a while, facing rejection above the critical resistance level of $44,000.
Despite the anticipation around the SEC decision on spot Bitcoin ETF, option market data analysis reveals a lack of bullish market sensitivity towards the ETF market among institutional investors. These developments paint a cautious picture while awaiting more clarity on the fate of the Bitcoin ETF.
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