Analysts are now eyeing a potential window for the approval of Spot Bitcoin exchange-traded funds (ETFs), setting the time frame between January 5 and 10, 2024. The previous deadline of November 17 passed without any discernible action from the Securities and Exchange Commission (SEC).
Updated Timeline for Approval
James Seyffart, an ETF specialist from Bloomberg Intelligence, shed light on this updated timeline. He pinpointed the deadline for Hashdex and Franklin Templeton around January 5-8, aligning with the broader window of January 5-10. This revised timeline quashes any lingering hopes for a December approval, with recent SEC developments pushing the odds to the year 2024. Seyffart and colleague Eric Balchunas maintain their prediction of a 90% likelihood of approval by January 10.
Financial Advisors and BTC Access for Clients
Financial advisors, eagerly anticipating Spot Bitcoin ETF approval, are poised to provide access to BTC for their clients. Ric Edelman, founder of Edelman Financial Services, a $250 billion asset management firm, underscores the significance of ETF approvals for financial advisors. Edelman predicts a surge in interest, citing that 12% of advisors currently recommend Bitcoin, while 47% own the asset.
“Advisors often grapple with the conflict of owning Bitcoin while not recommending it to clients, presenting a potential challenge,” Edelman emphasized. Among the 47% of advisors who own BTC, many are eagerly awaiting the availability of spot BTC ETFs, anticipating compliance department approvals for this innovative investment product.
“I believe that the availability of spot BTC ETFs will lead to a surge in interest and adoption among financial advisors. It will also enhance their credibility and facilitate better recommendations to clients,” said Ric Edelman.
In a recent memo, the US SEC disclosed that it engaged in discussions with Grayscale on Thursday regarding the prospective transformation of the Grayscale Bitcoin Trust into an ETF. The regulator body had initially opposed this transition, but Grayscale contested the decision in a legal battle, ultimately emerging victorious.
