Recently, several leading Bitcoin Exchange-Traded Fund (ETF) issuers have been in discussions with the Securities and Exchange Commission (SEC), finalizing the details of their products and thereby increasing the likelihood of approval. On Dec. 13, James Seyffart, Bloomberg’s ETF analyst, reported that four distinct issuers have consulted with the SEC about their Bitcoin product filings.
Nothing groundbreaking to report but 4 different issuers have met with the SEC regarding their #Bitcoin ETF filings in last few days. @BlackRock met with them yesterday for the third time in as many weeks. While @Grayscale, Franklin, and @Fidelity each had meetings last week pic.twitter.com/5gwBk83m0o
— James Seyffart (@JSeyff) December 12, 2023
There is high anticipation for the launch of a spot Bitcoin ETF product, with predictions suggesting that the new product could attract up to $100 billion in inflows if approved. However, James Seyffart, a top Bloomberg ETF analyst, has cautioned against these high expectations, indicating that such a substantial volume projection may not be achieved for several years.
This is likely an overestimation of demand in my opinion. Gold ETFs have been around since 2004 in the U.S. & currently have ~$95 billion in assets here. Spot #Bitcoin ETFs getting that much in inflows would be an EXTREME outlier success case even if measured over multiple years https://t.co/K2opcc2E9S
— James Seyffart (@JSeyff) December 12, 2023
BlackRock, a major player in the financial sector, had its third meeting with federal regulators in as many weeks on Dec. 12. Other significant entities such as Grayscale, Franklin, and Fidelity also had their meetings with the SEC last week. BlackRock has recently updated its Bitcoin ETF application to facilitate participation from large banks by introducing new shares in the fund that are cash-based, rather than solely relying on crypto assets.
The SEC is expected to decide on BlackRock’s application by Jan. 15, with a final deadline set for March 15. Seyffart noted that representatives from the Division of Trading and Markets and the Division of Corporate Finance were present at each meeting.
Valkyrie Claims Its Spot Bitcoin ETF is Ready to Launch
In related news, Nate Geraci, the President of ETF Store, had a conversation with Steven McClurg from Valkyrie. McClurg expressed optimism about the progress of the spot ETF race, stating that things were “getting very close”. He mentioned that aside from share creation/redemption, the SEC has no other significant concerns.
He added that Valkyrie’s products are ready for launch and the ETF infrastructure is already set up. McClurg indicated that the potential approval could come any time after January 2nd. However, some analysts, including Seyffart and Geraci, are looking at Jan. 10 as a possible date for batch approvals.
Despite the potential indication of upcoming Bitcoin ETF approval suggested by recent meetings, the Bitcoin (BTC) price did not reflect this optimism. According to CoinMarketCap, BTC’s price fell by almost 2% within the last 24 hours, with a trading value of $41,130.80 at the time of reporting.
