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Nate Geraci, has shed light on a critical juncture in the potential approval process for spot Bitcoin ETF Exchange-Traded Funds (ETFs) by the SEC US Securities and Exchange Commission. In reference to insights provided by Bloomberg analyst James Seyffart, Geraci’s recent communication on X underscores the limited timeframe currently available for the SEC to issue 19b-4 approval orders for a group of spot Bitcoin ETFs. That with the deadline set for Friday, November 17. Its good to mention that he is President of the ETF Store and host of the ETF Prime podcast
Geraci expounded, stating, “The scrutiny on spot Bitcoin ETFs persists. According to Bloomberg’s James Seyffart, there exists a brief window. And that During when SEC may issue 19b-4 approval orders.
He emphasized the prevailing sentiment that the SEC inclined to collectively approve spot Bitcoin ETFs to avoid perceived bias in an intensely competitive market. Geraci highlighted, “There is a consensus that the SEC will opt for batch approval of spot Bitcoin ETFs to steer clear of appearing as an arbiter in an exceedingly high-stakes and fiercely competitive market.”
Impact of Public Comment Period on Spot Bitcoin ETF Approvals
The urgency of this time-sensitive window is heightened. As it precedes a phase wherein recent submissions by issuers. Such as Hashdex, Franklin Templeton, and Global X will enter a public comment period, commencing on November 17. This development would preclude their inclusion in any immediate batch approval process.
“This window [for approving all 12 filings] will close on November 17. That because that is when issuers who filed later than the others [Hashdex, Franklin Templeton, and Global X] will enter a public comment period. During which the SEC simply won’t approve them until that period concludes (early January),” explained Geraci.
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Deciphering SEC’s Role in Spot Bitcoin ETF Approvals: Insights from Geraci and Ottaviani
Geraci further elucidated the differentiation between the 19b-4 approval orders and the SEC’s endorsement of each issuer’s registration statement. The initial step is a procedural one that eases the listing and trading of ETFs. Whereas the latter carries greater importance for the actual launch of these ETFs. He further mentioned: “The SEC’s approval of each issuer’s registration statement (S-1 or S-3) holds considerably more significance for the timing of the actual launch. And is likely to take place at a later date.”
“Incidentally, another factor to take into consideration is the possibility of a government shutdown later this week…,” Geraci concluded, introducing an additional layer of intrigue surrounding the potential approval of spot Bitcoin ETFs this week.
Bitcoin expert Alessandro Ottaviani provided additional context. As indicating via X, the pivotal dates in the SEC’s decision-making process: “Until Nov 17, we are in the 8-day window. The deadline for the most recent two applications (Hashdex and Franklin Templeton) is Nov 17. And for the 10th ETF application (Global X), it is Nov 21.
SEC’s Deadline Dilemma
Should the SEC choose to defer these filings, January 10, 2024, would become the next significant deadline. On this date, the US agency must make a decision on the final deadline for Ark Invest’s spot Bitcoin ETF application.
However, as reported by Bitcoinist last week, it is crucial to underscore that the SEC retains the authority to approve the other nine ETF filings. That should be done at any point between now and January 10.
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