A series of meetings between the Securities and Exchange Commission and a handful of stock exchanges are fueling confidence that the approval of a long-awaited spot bitcoin exchange-traded fund could be imminent.
FOX Business has learned that SEC staff attorneys from the Division of Trading and Markets are meeting Wednesday with officials from the major exchanges — the New York Stock Exchange, Nasdaq and Chicago Board Options Exchange — where the ETFs would trade.
The meetings are seen as a positive sign that the SEC is nearing approval of some or all of the dozen applications by major money managers and crypto firms for the product, according to people at the firms who asked not to be quoted by name. Specifically, the SEC is asking the exchanges to revise and finalize their so-called 19b-4 filings, submitted by the exchanges on behalf of issuers, which must receive SEC clearance before the ETF can be sold to the public.
While the final decision has not been made, sources close to the proceedings say the SEC could begin notifying issuers of approval on Friday with trading beginning as early as next week. ETF analysts and issuers alike remain confident that a favorable decision from the SEC will be made on or before Jan. 10, as the SEC continues to meet with key players on the matter.
Of course, the SEC could deny the applications. Hours before FOX Business reported on Wednesday’s meetings, Singapore-based crypto platform Matrixport released a research note stating it expects the SEC to reject all spot bitcoin ETF applications, citing the Democrat majority on the agency’s five-member commission and Chairman Gary Gensler’s reluctance to embrace crypto.
The price of bitcoin fell by more than 7% on the heels of that report after exceeding close to a two-year high of $45,000 on New Year’s Day in anticipation of a spot ETF approval.
“Broadly speaking, if the Commission declares a registration statement effective, that is reflected on EDGAR,” an SEC spokesperson told FOX Business. “Any Commission 19b-4 orders will be posted on our website and then published in the Federal Register.”
Press officials from the NYSE, Nasdaq and CBOE didn’t immediately respond to requests for comment.
If approval does occur, retail investors would gain greater exposure to the world’s largest cryptocurrency at less cost than the already approved bitcoin futures ETF.
Purchasing an ETF through highly regulated and trusted money management firms such as BlackRock or Fidelity may also encourage a larger pool of investors to add cryptocurrency to their portfolios.
