Analysts from Bloomberg have recently pointed to a potential unfolding of events that could result in the approval of a Bitcoin (BTC) spot ETF by the US Securities and Exchange Commission (SEC).
The analysis indicates that the SEC is engaged in constructive discussions with companies that have requested the approval of Bitcoin ETFs. And according to analysts, these conversations are often a sign that approval is imminent and expected to happen as early as January 2023.
According to Bloomberg analysts, the SEC is already in talks with industry companies and signaling that the approval is likely to occur in January, prompting these companies to start preparing the structure for the ETF’s operation.
Optimism regarding the approval of a Bitcoin ETF is reinforced by the SEC’s recent refusal to appeal a decision that allowed Grayscale Investments LLC to convert its Bitcoin Trust into an ETF.
The agency does not plan to appeal in this case, as the deadline for appeal expired last Friday, according to an anonymous source familiar with the matter, as reported by Bloomberg.
James Seyffart, an intelligence analyst at Bloomberg, predicts that this refusal may lead to increased negotiations between Grayscale and the SEC. “We will get more information next week and find out what will happen next,” Seyffart said.
Seyffart also highlighted that while the SEC had the option to appeal to the Supreme Court, he believes it is unlikely. This suggests that the SEC is inclined to move forward with the Bitcoin ETF approval process, rather than further prolonging the decision.
The SEC recently approved Ethereum Futures ETFs, and these products are already being traded. The agency has faced various cryptocurrency-related cases this year, but the decision not to appeal in the Grayscale case is seen as a significant step towards approving Bitcoin ETFs.
Bloomberg analysts estimate that there is a 90 percent probability that the SEC will approve a Bitcoin ETF around January 10, marking a significant development in the cryptocurrency space and providing investors with an easier and regulated way to gain exposure to Bitcoin.