Bitcoin-ETF issuers advanced to key details in talks with SEC

Bitcoin-ETF negotiations have advanced to key details

According to experts, such discussions are nearing the end of the decision-making process regarding the ETFs

The U.S. Securities and Exchange Commission (SEC) and companies that have applied to float bitcoin ETFs have begun discussing key technical details of the investment products, which could signal their imminent approval by the U.S. regulator, Reuters reports.

What makes a spot bitcoin ETF so important

Various ETFs, including gold, have trillions of dollars in assets under management. In the cryptocurrency community, it's generally accepted that even a small percentage of that capital can potentially impact the global crypto market. If spot bitcoin ETFs are approved, demand for the cryptocurrency will increase: buying shares in the funds involves the delivery of bitcoin as an underlying asset, i.e. its direct purchase in the market, affecting the exchange rate.

As journalists write concerning several experts, such discussions usually take place closer to the end of the decision-making process regarding ETFs. So far, 13 asset management companies, including BlackRock, Invesco, Grayscale, and ARK Investments, have applied for a spot bitcoin (BTC) ETF.

The regular deadline for regulators to decide whether to approve, reject, or postpone a decision on bitcoin-ETF applications is set for mid-January. ETF market analyst at Bloomberg James Seyffarth recently said that the potential window for approval of spot bitcoin-ETFs is likely between Jan. 5 and Jan. 10.

Bitcoin began its meteoric rise in mid-October amid news of a potential SEC approval of a spot bitcoin exchange-traded fund (ETF). Now bitcoin is trading around the $43-44 thousand mark. The price of the first cryptocurrency has grown by more than 16% over the past week and 25% over the past month, returning to levels that have not been seen in the market since the collapse of the Terra ecosystem in May 2022.

On Nov. 20, Bloomberg analysts predicted that the spot bitcoin-ETF market could attract as much as $100 billion from large investment funds such as BlackRock, Fidelity, and Invesco. According to experts, the approval of bitcoin-ETFs by the US Securities and Exchange Commission (SEC) will allow investment giants to place some of their funds in the cryptocurrency market.