In a surprising turn of events, the U.S. Securities and Exchange Commission (SEC) has swiftly acknowledged the 19b-4 filings for options trading on spot Bitcoin exchange-traded funds (ETFs). This accelerated timeline, noted by Bloomberg’s senior ETF strategist, James Seyffart, is causing anticipation in the cryptocurrency market.
Seyffart speculates that the approval for options trading could materialize as early as the end of February, marking a significantly faster pace than the SEC’s usual protocol. He highlights that the absolute earliest decision is 27 days away, while the latest possible outcome could extend to September 21, 2024.
SEC’s Speedy Review Sparks Crypto Optimism
Responding to queries regarding the expedited process, Seyffart emphasizes the unusual speed of this 19b-4 submission, drawing on instances where similar requests were granted in as little as 14 days. The current evaluation period, initiated on January 16, has already seen a three-day progression, setting an optimistic tone for the cryptocurrency community.
Bloomberg’s ETF strategist, Eric Balchunas, provides insights into the market dynamics on the fifth day of trading. Despite a slight downturn following a substantial -$582 million decline in GBTC, the total rolling net flows for the week remain positive at +$1.2 billion. This setback for GBTC contributes to a significant total loss of -$2.2 billion, while the Nine’s robust +$3.3 billion, coupled with a remarkable $6.6 billion in volume, paints a contrasting picture.
Balchunas highlights the inclusion of FBTC, joining IBIT in the “Billy Club,” signifying noteworthy developments in the evolving market landscape. He points out that after five days of existence, the Newborn Nine has about 40% of MicroStrategy’s Bitcoin holdings.
As the market undergoes fluctuations, the total inflows of spot Bitcoin ETFs within the initial five days of trading are scrutinized. Despite selling pressure on Thursday, January 18, Bitcoin’s price has rebounded, surging above $42,000. The cryptocurrency community is now on the edge of its seats, eagerly awaiting the SEC’s decision that could pave the way for options trading on spot Bitcoin ETFs.