U.S. SEC Meets With Stock Exchange Officials Ahead of Potential Spot Bitcoin ETF Approval

The United States Securities and Exchange Commission (SEC) will be meeting with officials from major stock exchanges like the New York Stock Exchange (NYSE), NASDAQ, and Chicago Board Options Exchange (CBOE) on Wednesday, FOX Business reported. News of the scheduled meeting comes amid expectations of a potential spot Bitcoin ETF approval.

SEC Meets With Stock Exchanges

Spot Bitcoin exchange-traded fund (ETF) is a financial product that tracks Bitcoin’s price. Through the product, users can invest in Bitcoin without the rigours of handling the digital asset directly.

Over the past few years, several companies handling billions of dollars have filed applications with the SEC, requesting approval of the financial product’s issuance in the U.S. In the past year alone, major firms like BlackRock, Grayscale, and Fidelity have submitted forms with the regulatory agency for the same investment vehicle.

Through the aforementioned stock exchanges, major investment and asset management companies will be able to offer a Bitcoin-backed asset to U.S. investors.

Although the SEC has yet to give a green light for the financial product, its series of meetings with key players solidifies the sentiment shared by ETF analysts and issuers that a spot Bitcoin ETF would be approved on or before January 10th.

Will a Spot Bitcoin ETF Be Approved?

Notably, the sentiment shared among key players does not rule out the fact that the regulatory watchdog may turn down all applications. On January 2nd, the crypto-based platform Matrixport published a report stating why the SEC would not approve the ETF in January, as opposed to its previous stance supporting approval sooner. The speculative article was soon accompanied by a price decline in BTC.

Later, Bloomberg senior ETF analyst Eric Balchunas discredited Matrixport’s sentiment in a tweet:

“We have heard nothing to indicate anything but approval [for the spot Bitcoin ETF],” he said.

At the same time, Balchunas is not abolishing the idea that the SEC may deny applications for the ETF product.

Since companies offering spot Bitcoin ETFs have to purchase actual BTCs, market experts believe that Bitcoin’s value will soar amid increased demand. Presently, BTC trades at $42,900, representing a 4.8% decline in the past 24 hours.

Source: CoinStats