Despite Bitcoin‘s price surpassing the $40,000 mark, some investors remain uncertain about whether the market has entered a definitive recovery phase. After a tough period of 1.5 years, it is difficult to be convinced of a rebound, a sentiment shared by many analysts. However, with the potential approval of an ETF, a significant bull market could commence, a detail highlighted by Nate Geraci.
Grayscale won a lawsuit against the SEC in August, paving the way for other potential ETF issuers. The SEC’s decision to deny ETF applications was not justified based on price manipulation grounds. In the US, unresolved issues, political matters, rights, and freedoms are often settled through such court decisions.
This court decision was marked as a historic turning point for crypto. With the SEC approving future BTC ETFs in 2021, the excuses of price speculation and volatility can no longer be a shield. Therefore, we know that negotiations with publishers have been taking place for months, files have been updated, and every day the approval becomes more imminent. The GBTC decision became a catalyst for the SEC to move away from its negative stance and consider the opposition.
The SEC was under pressure from all sides. If it does not approve the upcoming ETF applications in January, it could face lawsuits from the world’s largest asset manager BlackRock and other trillion-dollar giants. Senators are saying that approval is necessary and that the SEC’s reluctance cannot be justified in the future.
Therefore, the SEC will approve a spot Bitcoin ETF. However, this decision could come much sooner than January 10th. Nate Geraci, co-founder of the ETF Institute, wrote about this: Grayscale/NYSE has not refiled the 19b-4 application for the Grayscale Bitcoin Trust yet. The initial application was made in October 2021. If there has been no new application despite the passing months, the SEC may already be preparing to approve GBTC’s transformation from a trust to an ETF. If this is the case, we could see approval for GBTC’s ETF conversion before the other ETF decisions on January 10th.
