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Bitcoin ETF Approval on Jan 3? Rumours Abuzz
- Speculation has been swirling around January’s Bitcoin ETF approval, with a date of January the 3rd floating online.
- The spot ETF approval has hinged upon cash-settled funds, with the SEC disallowing in-kind swaps with actual BTC.
- Not all are optimistic though, with some crypto personalities citing the lengthy review process makes a Jan 3rd deadline incredibly tight.
- Regardless of the specific date, anticipation for the potential milestone is keeping the entire crypto community on edge.
Perhaps fuelled by some festive drinking and food-induced comas, the new year is often a time of heightened optimism among the financial markets. This same optimism can lead to rumours – some much more reliable than others. With the crypto community anticipating a potential spot Bitcoin ETF approval this month, many have taken to X (formerly Twitter) and other social media platforms to predict a date. Well-known media outlet Reuters even joined the fray by putting forth a potential date – January 3rd, 2024.
Amendments Key to Potential Approval
According to a Reuters article from last week, a late-December meeting between the SEC and institutions with pending applications may have finally sparked a solid approval date, sometime later this week. The report goes on to say that the U.S. regulatory body may inform financial institutions they can launch their product as soon as tomorrow. If this were to be the case, the spot Bitcoin ETF products could be live by January 10th, although it’s unlikely every applicant would meet this deadline.
It appears an agreement has been reached between the SEC and asset managers, with the sticking point switching funds from in-kind redemptions to cash-only. This means that investors will not be able to swap between BTC and the spot BTC ETFs and will have to sell any of their holdings into cash. While some think this is too restrictive and goes against Bitcoin’s core fundamentals, the reality is most who will be buying a spot ETF are TradFi players who just want to trade on a regulated market. Those deeply entrenched in the crypto community will likely just buy and store Bitcoin (BTC) themselves anyway.
Fox Journalist Believes Rumoured Date to be Unlikely
Though some in the cryptosphere are gearing up for a massive week, Fox journalist Eleanor Terrett believes the rumours of a Jan 3rd approval to be a little far-fetched. Specifically, she simply states that there probably isn’t enough time for the lengthy process to be completely finalised within the next 24-48 hours.
From what I understand…the SEC still has to review all the changes made to the S-1s filed on Thursday/Friday AND make comments on them…SEC staff has been off since Friday so a Tuesday or even a Wednesday approval seems tight.
Eleanor Terrett The SEC hasn’t exactly built the best relationship with crypto investors, with many sharing her disbelief at the rumour, albeit in less uncertain terms.
However, Terrett finishes off her tweet with a sentiment no doubt echoed by the crypto community at large:
Regardless, the next two weeks will be exciting for crypto.
Eleanor Terrett 
Author
Ben Knight
Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.
