Crypto market analysis by Luno

Critical Deadline Nears for US Spot Bitcoin ETFs: Trading Could Begin on January 11

Cryptoknowmics - ( 1 months ago )
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In a pivotal moment for the cryptocurrency industry, the U.S. Securities and Exchange Commission (SEC) has set a crucial deadline for potential issuers of spot Bitcoin exchange-traded funds (ETFs). According to reliable sources, spot Bitcoin ETF issuers are required to submit final revisions to their pending S-1 applications by 8 a.m. on Monday, January 8, in Washington. The SEC, under the leadership of Chair Gary Gensler, is expected to make decisive decisions on these applications no later than January 10. If approved, spot Bitcoin ETFs could commence trading as early as January 11, marking a significant development in the cryptocurrency market. [embed][/embed] Key Requirements for Trading Approval For spot Bitcoin ETFs to initiate trading, approval is required on two fronts. Firstly, the SEC must give the green light to the 19b-4 filings submitted by exchanges seeking to list these ETFs. Secondly, regulatory approval must be granted for the S-1 forms submitted by ETF issuers. The successful approval of both these elements would pave the way for spot Bitcoin ETFs to become available for trading, potentially unlocking billions of dollars in investment from retail and institutional investors alike. [embed][/embed] SEC Warns Against FOMO Investing Amid the anticipation surrounding the potential launch of spot Bitcoin ETFs, the SEC has once again emphasized the dangers of FOMO (Fear of Missing Out) investing in the crypto market. In a recent X post on January 6, the SEC’s Office of Investor Education reiterated its caution to retail investors about trends such as online investing, digital assets, meme stocks, and NFTs. Historically, the SEC, under both Gary Gensler and former Chair Jay Clayton, has expressed concerns related to investor protection and the potential for market manipulation, leading to reluctance in approving such products. The looming decision on spot Bitcoin ETFs will undoubtedly shape the landscape of cryptocurrency investment in the U.S. Read More