Your daily briefing of some of the most important stories from the crypto, finance, and tech space.
Further Hints That A Bitcoin Spot ETF Is Imminent
The hints are getting stronger that a spot bitcoin ETF could be approved very soon.
The Bitcoin ETF is the big narrative for this bull market. At a time of economic and geopolitical uncertainty, when inflation is still a serious problem, the idea of an alternative asset that lies outside of the mainstream financial system and that occupies a role similar to that of gold (but with far more room for growth), is highly attractive.
One or more bitcoin spot ETFs would allow ordinary retail investors and institutions to invest in BTC easily and safely, using popular trading platforms, and without having to worry about custody. Because it's a spot, not futures, ETF, the money they invest would be passed through to the underlying bitcoin market. There's potentially billions of dollars of new demand on the way.
For these reasons, any hint that an ETF is about to be approved by the SEC is being closely watched and analyzed by the crypto world.
Is Approval Imminent?
During the application process, ETFs go through numerous stages, at which they can be approved, denied, or delayed by the SEC. In the past, the regulator has strung the process out, waiting until the final deadline before denying the application (generally on spurious grounds).
This time, there's a high degree of confidence things will be different. That's largely down to BlackRock, a financial heavyweight that has huge clout with the SEC.
There's an open window right now for the SEC to make those approvals. This is still not the most likely or expected outcome, but it's possible that the regulator gives the green light some time between now and next Friday.
Whether it's now or in January, there are some strong hints that approval is imminent.
As Bloomberg analyst James Seyffart—an ETF expert whose words are always noted by the crypto community—explains, some of the big financial institutions are spending an awful lot of money on marketing. That's pretty weird for this point in the year, since usually big marketing campaigns usually kick off in January. What could they be planning?
Grayscale Is Talking To The SEC
The second is that the SEC is actively engaging with Grayscale, following the company's win against the regulator in the courts earlier this year. Grayscale want to convert their Bitcoin Trust (GBTC) into a spot ETF.
CoinDesk reports that Grayscale has been in dialog with the SEC, signaling that arrangements could be under way for a forthcoming approval.
According to sources familiar with the matter, Grayscale has been in contact with both the SEC's Division of Trading and Markets and the Division of Corporation Finance since winning its court battle with the regulator on Aug. 29.
A New Yearly High For BTC
Finally, price talks. If these major players really do believe an ETF approval is imminent, then they are going to want to load up to seed their funds (as well as insiders quietly buying, which we can assume they are doing).
Bitcoin has put in an outstanding performance for October, and so far November is on track to be another green month.
This confidence may just be part of the normal crypto market cycle. But it's clear that there's a lot of hype around the ETF, and it looks suspiciously like some large buyers are positioning for what they think, or know, is coming.
Subscribe to our newsletter and follow us on Twitter.