NEW YORK, December 28, 2023 – The crypto community is on edge as the US Securities and Exchange Commission (SEC) nears a crucial deadline for the potential approval of a spot Bitcoin Exchange-Traded Fund (ETF).

The decision, scheduled for January 10, 2024, could mark a significant milestone for Bitcoin's integration into traditional finance, although some concerns have been raised about the potential for increased centralization.

The SEC has reportedly set a deadline of December 29, 2023, for companies seeking to launch Spot Bitcoin ETFs to finalize their applications.

In recent weeks and months, notable firms like BlackRock, Grayscale Investments, ARK Investments, and 21Shares have engaged in discussions with the SEC, signaling widespread industry anticipation.

Fox Business reporter Eleanor Terrett confirmed the December 29 deadline in a post on X (formerly Twitter) on December 24, stating that only the ETF applications that are “fully finished and filed” by that date will be considered for approval.

Will Multiple ETFs Be Approved at Once?

Speculation is rife that the SEC might approve multiple spot Bitcoin ETF applications simultaneously before the January deadline. This expectation has been echoed by analysts, including Bloomberg Intelligence’s Eric Balchunas.

As recently as this week, Balchunas stated that the SEC is “ready to approve spot bitcoin ETFs,” noting a “mad scramble” behind the scenes at ETF issuers to finalize their applications. He emphasized that only those applicants who have finalized their submissions by December 29 will be considered for “the crucial first tranche of the race.”

Market Sentiment and Investor Implications

Market sentiment is notably optimistic, reflected in significant gains for Bitcoin in anticipation of potential ETF approval.

For investors, SEC approval could enhance accessibility to Bitcoin, removing the complexities of managing wallets and private keys. This ease of access might attract increased institutional and retail investment in the digital asset market.

The approval of a spot Bitcoin ETF would represent a substantial entry of Bitcoin into traditional financial markets, offering investors a regulated and convenient way to gain exposure to Bitcoin's price movements without directly holding the cryptocurrency. As the deadline approaches, the crypto community and financial markets will be watching closely.