Key Points

  • According to US laws, the US SEC is bound to give a decision regarding the approval process of an ETF 45 days after the initial filing. This week will see the end of those days regarding a group of Bitcoin spot ETFs filed with the regulator.
  • Galaxy Digital CEO Mike Novogratz expects this week’s decision to be an announcement of an approval delay but to be approved in the next 4 to 6 months.

The clock is ticking for US SEC to make its stand publicly on Bitcoin Spot ETFs, as 45 days are since a series of Bitcoin Spot ETFs were filed with the regulator at the end of this week. Consequently, Galaxy Digital CEO Mike Novogratz thinks the most likely decision would be a delayed response, but markets might see an active Bitcoin Spot ETF in the next 4 to 6 months. 

A step closer to the US SEC Bitcoin Spot ETF decision?

Bitcoin has taken international markets by storm prompting big asset managers like BlackRock to soften their hearts and warm up to the idea and innovation behind the coin. In June, BlackRock led a series of traditional finance institutions to file for Bitcoin spot ETFs.

This week will see 45 days that the US SEC has to respond to the filings end. As such, it is expected to issue an official statement regarding the filings. However, as seen before, the regulator always takes its time before making such decisions, given there is a large number of filings at the moment.

Both Ethereum and Bitcoin spot ETF filings from TradFi institutions now have a count of over 20. As such, the US SEC would likely choose to delay the decision to approve any of them at this point.

Consecutive approval in 2024?

ARK Invest’s CEO Cathie Woods has called on the US SEC to approve all Bitcoin spot ETFs consecutively to avoid giving any company a market advantage over the other, given that most TradFi competitors have filed for similar assets. Her remarks called on the US SEC to ensure that no companies get a competitive advantage to make the markets fairer, as approving these assets may open the door to further mainstream adoption.

While this is possible, it still needs more time to become a reality. Galaxy Digital CEO thinks it could take 4 to 6 months for the regulator to approve these assets despite its 45 days to respond per US securities law ending this week. That pushes the possible approval dates to 2024.

However, none of the above possibilities are guaranteed as no insider or official information from the regulator has been made public yet. Keep watching Fintech Express for updates on this story as soon as it happens.