K33 Research: Spot Bitcoin ETF approvals expected in January

2023-12-19 19:18:09

A K33 Research report said SEC approvals for spot Bitcoin ETFs in January are likely “nailed on” amid a flurry of updated S-1 filings from issuers like BlackRock.

The United States Securities and Exchange Commission (SEC) is on track to sanction spot Bitcoin ETFs in early January following progressive talks with issuers over the preferred redemption model for these investment vehicles, according to K33 Research

Cash creation is not the most efficient structure, but the filers’ updates are a further signal in favor of ETF approvals in the next three weeks.

– K33 research report

Dec. 18 saw a pivot to this cash creates structure from several issuers, including BlackRock and WisdomTree, which both submitted amended applications with the SEC. The updates left the door open for in-kind redemptions should America’s securities watchdog decide to greenlight this alternative

crypto.news, however, reported that the SEC is likely to favor applications settled on cash creations, which require firms to hold the fiat equivalent of the underlying Bitcoin (BTC) offered via exchange-traded funds.

There was no definitive timeline for approval from the SEC at press time, although ETF experts and crypto proponents expect a favorable decision by Jan. 10. Coincidentally, this is also the decision deadline for ARK Invest’s spot Bitcoin ETF jointly filed with 21Shares

Speculators have also debated the possible impact of a spot Bitcoin ETF on BTC’s price and the broader cryptocurrency market by extension. On one hand, institutional players like Mike Novogratz and Bitwise predict billions of inflows into BTC followed by a run above the token’s $69,000 all-the-time set in November 2021.

Conversely, analysts at JPMorgan Chase, America’s largest bank, opine that Bitcoin ETFs are exaggerated. The bank’s researchers predict that spot Bitcoin ETFs would redirect capital already deployed toward other BTC operations and investment strategies such as mining.

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