“Breaking barriers in the world of finance, a prominent lawyer predicts that the much-anticipated Bitcoin ETF could potentially receive approval as early as this Thursday, opening up a new era of mainstream adoption for the world’s leading cryptocurrency.”
Bitcoin’s price has encountered resistance at $35,000 as excitement regarding the potential approval of the first spot BTC exchange-traded fund (ETF) has diminished. However, an attorney from Davis Polk, Scott Johnsson, believes that the market could be in for a surprise. He suggests that approval for a spot BTC ETF could come within the next few days.
Johnsson revealed this previously unreported development in a Twitter post, stating that the first closed meeting of the Commissioners since Grayscale’s appeal deadline expired and the mandate was delivered would take place on November 2. The agenda for the meeting includes resolving litigation claims and administrative proceedings.
While there is no certainty of any news emerging from the meeting, Johnsson’s tweet hints at the possibility of a spot BTC ETF being listed on U.S. markets before the end of 2023. Multiple spot BTC ETF applications have been amended recently in an effort to secure approval. Analysts believe that it is only a matter of time before one is ultimately approved, which would open the floodgates for others to be listed.
The SEC has requested amendments to bring all applicants under a consistent standard before approving the submitted applications en masse. The latest firms to file amendments include Ark Invest, BlackRock, Bitwise, VanEck, and Valkyrie. The amendments focus on how the funds will be initially seeded to enable trading.
Speculation about a potential leak ahead of an approval/disapproval order has arisen, but Johnsson believes that a leak is unlikely. He noted that there have been no other cases where such an order was leaked ahead of time.
According to Bloomberg Intelligence senior ETF analyst Eric Balchunas, there is a 90% chance that the Ark 21Shares spot BTC ETF application will be approved by its final deadline of January 10, 2024. Balchunas also highlighted the demand for a spot BTC ETF, as evidenced by the trading volume of BITO and GBTC.
It remains to be seen whether the upcoming closed-door meeting on November 2 will bring any significant developments in the approval process for a spot BTC ETF. However, the possibility of approval and subsequent listing on U.S. markets has sparked excitement among investors and analysts alike.