The SEC is set to make a final decision on the spot Bitcoin ETF application by Ark and 21Shares by the end of Wednesday, with significant implications for the cryptocurrency market. This follows a court defeat for the SEC, marking its first serious ruling on the matter.
Gabor Gurbacs, an advisor for VanEck, suggests that approval of a spot Bitcoin ETF could shift perceptions in favor of cryptocurrencies, as investors prefer owning whole units. The current unit bias, where investors shy away from owning fractions of Bitcoin, might deter potential investors.
Many potential investors are surprised to learn that partial ownership of Bitcoin is possible and often prefer owning a full unit over a fraction, according to Gurbacs. He believes this preference will change with the introduction of a spot Bitcoin ETF.
There is widespread belief that the ETF approval is imminent, based on the positive signals from the process, including over 30 meetings with issuers in December, discussions with exchanges, and the uploading of necessary documents to the SEC system.
Despite internal sources suggesting approval of the ETF, optimism remains cautious as the SEC could still issue a rejection. The outcome will only be known once the decision is announced.