The SEC’s spot Bitcoin ​ETF decision will officially take place between January 5th and 10th! Check out the top Bloomberg analysts

As the possibility of spot Bitcoin ​ETF approval increases, Bitcoin price is gaining upward momentum and recently reached a 19-month high of $38,800. According to Bloomberg analysts, the U.S. Securities and Exchange Commission (SEC) is expected to decide whether to approve a spot Bitcoin exchange-traded fund (ETF) between January 5 and 10.

SEC Approval Period Begins

The launch of a Spot Bitcoin ETF has been a topic of discussion in the market for a long time since BlackRock first applied. These funds provide investors with exposure to Bitcoin without having to purchase and store it directly, making the investment process easier and potentially attracting a wider range of investors. This is expected to increase the overall cryptocurrency market cap by billions of dollars.

Standard Chartered also predicts that ETF approval could result in a gain of more than 160% of assets, potentially hitting its projected price target of $100,000 by the end of 2024.

The window for the SEC to approve spot Bitcoin ​​ETFs is set to be 10 days from January 5. Bloomberg’s James Seyffart confirmed these dates and the expected timeframe for the agency’s decision.

The SEC is currently reviewing more than a dozen applications for Spot Bitcoin ETFs. Seyffart said an approval decision is expected to be made later in the period, between January 8 and 10.

So far, the SEC has continued to delay ruling on Bitcoin products. However, there are predictions that this will change in early 2024. Notably, it is expected that decisions on several applications could be made as early as January, following a previously reported approval window.

ETF competition becomes crowded

Amid growing hopes that a spot Bitcoin exchange-traded fund (ETF) could soon receive regulatory approval, some companies in the ETF sector are planning to refrain from fierce competition for market share.

Major players such as ProShares, Amplify Investments, and Roundhill are avoiding launching Bitcoin ETFs. Their concerns center on saturated markets, high regulatory and marketing costs, and doubts about whether there will be enough demand to offset those costs.

However, the introduction of Bitcoin ETFs, which offer convenient investments for both retail and institutional investors, is expected to attract up to $3 billion from investors in the initial trading day and potentially billions more in subsequent periods.

The SEC is also making active moves toward approving a spot Bitcoin ETF. Regulators met with Grayscale and BlackRock to discuss application to spot Bitcoin ETFs.

BlackRock has modified its In-Kind model to address the SEC’s concerns and unresolved issues, and Grayscale has talked about converting Bitcoin Trust into a spot ETF. The SEC’s main concern is that U.S. broker-dealers handle Bitcoin directly, creating investment risk. As a result, the SEC proposed the “cash” model as a safer alternative. But this complicates fund operations and involves more steps for BlackRock.