The U.S. Securities and Exchange Commission (SEC), often criticized by the crypto community for its numerous lawsuits against crypto firms, is now expected to finally greenlight the country’s first spot Bitcoin Exchange-Traded Fund (ETF). This anticipation comes despite the SEC’s history of rejecting spot Bitcoin ETF applications.
The new year started with a hopeful outlook for crypto investors and companies awaiting SEC approval for the first spot Bitcoin ETF. Although Bitcoin’s price surged to $46,000 on the second day of the year, a report from Matrixport suggested the final approval might not come until the second quarter, dampening spirits.
Despite skepticism from many experts, leading ETF analysts like Eric Balchunas from Bloomberg predicted imminent approval, which helped Bitcoin recover most of its sudden $5,000 drop in price.
Artificial intelligence source Perplexity echoed similar sentiments, expecting the SEC to approve a spot Bitcoin ETF by January 10. Ongoing discussions and meetings between regulators and key players hint at a favorable decision, although the SEC has not yet made a public announcement.
The crypto market is divided over the potential impact of a spot Bitcoin ETF. While some, like Jimmy Song, believe such an investment product is insignificant, others argue that ETF approval is essential for Bitcoin to be recognized as a legitimate financial instrument by institutions. Experts predict that an ETF would accelerate capital inflows into Bitcoin and the broader crypto market, with significant institutional investors expected to enter the market.
