YEREVAN (CoinChapter.com) — The January 10 deadline for the approval of the first-ever spot Bitcoin ETF is just around the corner. However, with the Gary Gensler-led Securities and Exchange Commission (SEC) sending new comments on the recently updated S-1 filings of applicants, experts are divided in their analysis. Some insist that these are tactics by the SEC to delay the approval. Meanwhile, other analysts insist it is nothing but a sign that the regulatory body is fast-tracking approval.
Will the SEC approve a spot Bitcoin ETF?
The US Securities and Exchange Commission had declared 8 AM on Jan. 8, 2024, as the deadline for potential spot Bitcoin ETF issuers to make changes to their applications.
Accordingly, 10 applicants, including Grayscale, Ark/21Shares, and Blackrock submitted their updated S-1s (S-3 in Grayscale’s case) to Gary Gensler and Co.
However, just hours after the applications were filed, the SEC sent fresh comments on them. The swift action by the regulatory body became a cause of much speculation in the industry.
Perianne Boring, founder and CEO of the Chamber of Digital Commerce, believes this is indicative of the fact that the SEC doesn’t want to issue an approval on Jan. 10.
“This is a delay signal….I hope I am wrong in my interpretation. BUT I’m worried the SEC has more tools at its disposal to block spot bitcoin ETFs from coming to market. Chair Gensler doesn’t want to go down without a fight,”
she wrote on X (formerly Twitter).
However, Bloomberg ETF expert James Seyffart believes the SEC’s same-day response is a positive sign. According to him, the fact that Gary Gensler’s team sent a response on the same day shows the organization leans towards approval.
Scott Johnsson, GP at Van Buren Capital, agrees with Seyffart. Like the Bloomberg analyst, he sees this as a sign of inevitable approval.
“More than anything, these quick comments demonstrate SEC working to push everything forward for a quick approval and launch (vs what we saw with futures),”
he wrote.
Gary Genlser warns crypto investors
In an interesting development, SEC Chairman Gary Gensler recently posted a Twitter thread warning crypto investors of the risks involved. Urging them to keep the regulatory landscape in mind, he
“Those offering crypto asset investments/services may not be complying w/ applicable law, including federal securities laws… A number of major platforms & crypto assets have become insolvent and/or lost value. Investments in crypto assets continue to be subject to significant risk,”
he wrote.
Gensler also warned about fraud practices and Ponzi schemes, asking investors to exercise caution.
While he did not mention spot Bitcoin ETF, some are seeing these last-minute warnings as signs of approval. Is Gary Gensler now trying to prevent a Bitcoin (BTC) price rally when he announces the pending approval?
With financial experts divided in their interpretation of the SEC’s actions regarding spot Bitcoin ETF, only the Jan. 10 deadline can set the record straight.
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