The approval of the BlackRock Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC) is expected to have a significant impact on Bitcoin’s price and future investment trends. So, when will this decision be made?
1. When was BlackRock’s Bitcoin ETF approved?
According to the latest analyses, the most likely timeframe for BlackRock’s Bitcoin ETF approval is early 2024. Specifically, Bloomberg analysts James Seyffart and Eric Balchunas predict that the SEC’s decision could come between January 5 and January 10.
Seyffart shared on platform X:
“If an approval decision is made, it will most likely be announced on Monday (January 8), Tuesday (January 9), or at the latest, Wednesday (January 10).”
Notably, January 10 is also the final deadline for the SEC to make a decision on ARK Invest’s spot Bitcoin ETF application.
Bryan Armour, an ETF analyst at Morningstar, believes that the SEC might approve multiple spot Bitcoin ETFs simultaneously. This would provide investors with more options and make it easier to compare different products.
2. When did BlackRock file for the ETF?
BlackRock, the world’s leading asset management firm with an $8.5 trillion portfolio, officially filed for its spot Bitcoin ETF, named iShares Bitcoin Trust, on June 16, 2023.
Following this announcement, Bitcoin reacted strongly. Prior to the filing, BTC was trading around $25,500. However, upon the news, the price surged past $30,000. Since BlackRock’s submission, Bitcoin has recorded a 63% increase, reaching a peak of $44,600.
BlackRock’s entry into the Bitcoin ETF space not only strengthens institutional investor confidence but also contributes to the broader adoption of cryptocurrency. If the SEC approves this ETF, it could mark a major milestone in integrating Bitcoin into the traditional financial sector.
3. How long does it take for an ETF to be approved?
The approval timeline for an Exchange-Traded Fund (ETF) is not fixed and depends on multiple factors. This process involves several stages, from preparing the application and drafting the prospectus to submitting the filing to the U.S. Securities and Exchange Commission (SEC) or other relevant regulatory bodies, followed by a review and feedback process between the issuer and regulators.
Typically, the approval process can take anywhere from several months to over a year, depending on:
- The complexity of the ETF: Funds with a straightforward structure are usually processed faster than new or unprecedented financial products.
- The completeness and transparency of the registration documents: Well-prepared filings that fully comply with regulatory requirements tend to facilitate a smoother review process.
- Regulatory policies and oversight intensity: The SEC may request additional documentation or pose questions to clarify aspects of the ETF before making a final decision.
- Market conditions and the regulatory environment: Changes in financial regulations or significant market events can also impact the approval timeline.
In the cryptocurrency sector, the approval process for a spot Bitcoin ETF has faced numerous obstacles. The SEC has maintained a cautious stance due to concerns over transparency, price manipulation risks, and the lack of stringent regulatory frameworks. As a result, many previous applications have been either rejected or subjected to prolonged review periods.
However, in recent times, the involvement of major financial institutions such as BlackRock, Fidelity, and ARK Invest has placed significant pressure on the SEC. These firms not only have extensive experience in traditional finance but also possess substantial resources to ensure transparency and regulatory compliance. Consequently, the likelihood of the SEC approving a spot Bitcoin ETF in the near future has become a focal point of interest for investors.
If a spot Bitcoin ETF is approved, it could unlock substantial institutional capital inflows into the crypto market, fostering Bitcoin’s growth and legitimizing its role within the traditional financial system.
BlackRock’s ETF application has already contributed to Bitcoin’s price surge, and an official approval from the SEC could drive prices even higher. If granted, this ETF would mark a significant milestone for Bitcoin in the global financial landscape.
