Bitcoin ETF: Here are Key Trends to Watch This Week

Godfrey Benjamin
December 4, 2023 Updated December 5, 2023
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Global Bitcoin ETF Close To Stacking 1M BTC, Bullish For BTC Price?

The broad crypto community earnestly awaits a potential spot Bitcoin ETF approval from the United States Securities and Exchange Commission (SEC), especially as the stipulated date for a decision draws closer.

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Bitcoin ETF Trends to Watch

Two senior ETF analysts at Bloomberg Eric Balchunas and James Seyffart have remained in the forefront of discussions relating to the SEC’s decision on the numerous spot Bitcoin ETF applications. They both predicted that the odds of receiving approval for the new product are at 90%.

Recently, Seyffart announced that the SEC has a narrow window in which it will either approve or reject multiple Bitcoin spot ETFs in the United States. He said that this window now lies between January 5 and 10, 2024 meaning that the approval come before that time or within the week. 

In response to Seyffart’s post, Balchunas urged members of the public to look out for more S-1 filing amendments this week. On the other hand, the analyst confirmed that there would be no updated 19b-4s as the regulator has asked all potential Bitcoin ETF issuers to send them offline. Crypto asset management firm Hashdex was one of the most recent firms to amend its 19b-4 filing with the SEC.

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BTC ETF Redemption Models

There is also the subject of the potential ETF redemption model. Notably, the agency’s Trading and Markets division had a meeting with some of the applicants for the spot Bitcoin ETF offering. In BlackRock’s meeting with the SEC, the regulator talked about the choice of “cash create” model summary or “in-kind” redemption model for the impending ETF offering. 

Applicants like BlackRock seem to prefer the in-kind model to cash create, as it presents the cleanest structure for the asset manager and its end investors. Balchunas pointed out a rumor that only cash creates will be allowed in first grouping. If the rumors turn out to be true and BlackRock sticks to its choice of ‘in-kind’ redemption model, the asset manager is likely to miss out on the first grouping.

Also, it is not yet certain if Grayscale will be allowed to convert its GBTC to an ETF with the first grouping even after updating its application. Expectations are still building in anticipation of whatever the SEC’s decision will be.

At the time of writing, Bitcoin price is trading at $42,275.60, up 2.6% in the past 24 hours.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.