The anticipation for the approval of a Bitcoin spot ETF has sent the cryptocurrency market into a frenzy. However, the recent filing by Grayscale has raised concerns as important details remain undisclosed. With the approval window just a week away, investors are left wondering if the incomplete applications will hinder the progress of the highly anticipated ETF.
Read More: The Top 10 Bitcoin ETF Applications
Grayscale and Other Applicants Leave Important Details Unrevealed
Bitcoin price rallied over the weekend, breaking the crucial resistance of $45,000 and reaching a 21-month high. As the market eagerly awaits the approval of spot BTC ETFs, top applicants like Grayscale left their filings partially incomplete. One significant missing detail is the Authorized Participant (AP), a crucial aspect of ETF launches. Grayscale’s recent amendment failed to name an AP, raising concerns about their readiness for approval.
The Key Factors for Bitcoin Spot ETF Filings
Bitcoin spot ETF filings require applicants to address three important aspects: Authorized Participant (AP), fees, and seed capital. While these factors may seem irrelevant to the average investor, they play a crucial role in the approval process. However, as of now, about half of the applicants, including Grayscale, Bitwise, VanEck, and Hashdex, have yet to provide these details. Some applicants have even started their marketing campaigns before fulfilling these requirements.
Deadline Approaching
The deadline for approval from the Securities and Exchange Commission (SEC) is fast approaching, with the window set from January 8 to 10. Bloomberg ETF analysts predict that most of the missing details in the filings will be filled by next week. It is essential for the applicants to finalize the nitty-gritty of their filings before the deadline to ensure a smooth approval process. Grayscale’s recent filing amendment, which clarified cash-only creation/redemption, failed to name an AP and did not provide fee details.
Technical Analysis
Despite the incomplete filings and uncertainty surrounding the Grayscale BTC ETF, Bitcoin price has shown a bullish trend. The cryptocurrency surged by more than 6% over the weekend, reaching $45,000, the highest level in 21 months. While the resistance at $45,259 remains a challenge, the Relative Strength Index (RSI) indicates a bullish zone, suggesting the potential for further price appreciation. The expected approval of spot BTC ETFs could act as a catalyst for Bitcoin’s rise.
Possibility of Rejection and Potential Consequences
Although the chances of a spot Bitcoin ETF rejection are slim, Bloomberg ETF analyst Eric Balchunas suggests that the SEC may request “more time” rather than outright denial. The extensive effort put into the ETF filings by both the SEC and issuers makes a last-minute rejection unlikely. However, if an outright denial occurs, fund issuers may consider legal action against the regulator, following Grayscale’s example. Public comments opposing the ETFs have also been submitted, raising concerns about Bitcoin’s decentralized nature.
Final Words
The Grayscale BTC ETF filing has left investors with unanswered questions, as crucial details remain undisclosed. With the approval window just around the corner, the incomplete applications raise concerns about the readiness of the applicants for regulatory approval.
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While the bullish trend in Bitcoin price suggests optimism, the possibility of rejection and potential consequences loom over the market. Investors eagerly await further updates on the ETF approval process and the resolution of the undisclosed details.
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