Social Media Frenzy As BTC ETF Approval Inches Closer

Anticipation is rising on social media regarding the SEC potentially approving a Bitcoin exchange-traded fund (ETF), with speculation reaching new heights. The buzz intensified after the Grayscale Legal Chief Officer mentioned casually working on paperwork, and a reporter hinted at possible ETF approvals on X. While some analysts suggest approvals could happen as early as the next day, others anticipate a wait until the following week.

Could Go Either Way

A notable tweet by Grayscale has gained considerable attention lately, as not only is a possible approval trending on social media, discussions about Bitcoin ETFs are also rampant. The price of Bitcoin has similarly seen a 3.4% increase within a 24 hours period after a sharp drop on January 3rd, 2024.

However, not everyone is convinced of an immediate approval. Trader Scott Melkor acknowledges the active rumor mill but remains cautious. Bloomberg ETF analyst James Seyffart dismisses much of the January 5th approval speculation as noise, expecting approval between January 8th and 10th. Attorney Joe Carlasare points out that the public comment period for several ETF applications extends until midnight on January 5th, making approval before the next week seem very unlikely in his view.

Going All In

Senior Bloomberg ETF analyst Eric Balchunas notes that the SEC is presently providing final comments, and issuers are expected to file their final 19b-4 and S-1 forms soon. Approval hinges on these forms, especially the 19b-4 form, for any kind of potential approval. Scott Johnsson, general partner at VB Capital, remains skeptical about ETF approval before the next week unless all 19b-4 applications are cleared, and the SEC is open to simultaneous approvals.

Currently, 14 issuers, including BlackRock, Valkyrie, Bitwise, and Fidelity, are all vying for a Bitcoin ETF approval. Investors and enthusiasts are eagerly awaiting what the SEC will decide, recognizing its potential significant impact on the broader cryptocurrency market.