The cryptocurrency world is abuzz with anticipation as the final steps for the debut of spot Bitcoin exchange-traded funds (ETFs) on Wall Street are underway. Asset managers are expected to submit their final amendments by January 8, with analysts predicting that trading may commence as early as January 11. This development marks a significant milestone, given the Securities and Exchange Commission’s (SEC) historical reluctance to approve spot Bitcoin ETFs over the past decade.

Submission of Amendments

Analysts, including Bloomberg’s Eric Balchunas, highlight that the final revisions from asset managers seeking regulatory approval will be submitted through S-1 filings by 8:00 am Eastern Time on January 8. These filings are crucial as they reveal remaining fees and tickers associated with the ETFs. Notably, BlackRock has yet to disclose the fees for its ETF. Concurrently, exchanges set to trade these crypto funds have submitted their 19-b4 amendment forms, representing the last steps before the SEC issues its verdict.

SEC Decision-Making Process

The next stage in the decision-making process involves a potential vote by the SEC commissioners. As of now, nothing is scheduled on the commission’s public agenda before January 11. Balchunas suggests that the SEC might use its delegated authority policy, allowing them to make a decision without a formal vote. Analysts predict that most applicants meeting the regulator’s requirements before December 29 will likely be approved. However, uncertainties remain, especially regarding Grayscale, seeking the conversion of its Grayscale Bitcoin Trust into a listed BTC ETF.

Reactions to Better Markets’ Letter

A letter from Better Markets on January 5, describing the approval of ETFs as a “historic mistake,” is seen by Balchunas as the “last gasp of an angry crypto hater.” Critics argue that the current ways to buy crypto are already widely available, diminishing the ETF’s significance in making crypto accessible. The letter’s impact on the SEC’s decision remains uncertain.

Bitcoin ETF Frenzy and Market Impact

The potential approval of Bitcoin ETFs has stirred excitement in the crypto community, with many attributing recent price increases in Bitcoin to anticipation of this development. Despite existing avenues for exposure to Bitcoin in the stock market, the simplicity and accessibility of an ETF may attract a broader range of investors, including private bankers, investment advisors, and wealth managers.

Coinbase’s Expansion into EU Derivatives Trading

In a related move, Coinbase is preparing to offer crypto-linked derivatives in the European Union after acquiring a company with the necessary MiFID II license. The deal is expected to close later this year, further expanding Coinbase’s market reach.

Other Crypto Developments

Beyond the ETF saga, regulatory changes are being proposed globally. South Korea’s Financial Services Commission considers banning the purchase of crypto with credit cards to address concerns about illegal outflows and money laundering. Meanwhile, a report by TRM Labs indicates that North Korean hackers stole at least $600 million in crypto in 2023, raising concerns about cybersecurity in the crypto space. Additionally, YouTube personality Logan Paul is buying back NFTs from investors who lost money on his failed CryptoZoo game.

 As the cryptocurrency landscape continues to evolve, the potential approval of Bitcoin ETFs is poised to be a transformative moment. The final steps, including SEC decisions and market reactions, will shape the narrative around Bitcoin’s mainstream adoption and its impact on global financial markets. Whether the ETFs will be a catalyst for further price appreciation or trigger regulatory discussions, the coming weeks are sure to be pivotal for the cryptocurrency community.