Bitcoin (BTC) has experienced a strong rally, increasing by 3.5% and reaching $36,500 after a week of consolidation at $35,000. This rally coincides with the news that a crucial window for the approval of Bitcoin ETFs will open on Friday, as stated by Bloomberg’s senior ETF strategist James Seyffart.
According to Seyffart’s recent note, the U.S. SEC will have a brief period to approve all 12 spot Bitcoin ETFs starting on Friday, November 9. Last month, the SEC issued delay orders for applications from major players such as BlackRock, VanEck, Bitwise, WisdomTree, Fidelity, Invesco, and Valkyrie.
Seyffart highlights that this is the first time the window has opened since Grayscale’s victory. He further explains that the window for all 12 ETFs will close by November 17, but the SEC has the authority to make a decision on the first 9 on the list at any point between now and January 10, 2024.
Finance lawyer Scott Jhonson adds to the conversation by stating that even if there is a hypothetical approval this week, it would take at least a month, and likely longer, for an ETF to actually launch. The S-1s are still under review, and there is no set deadline for that process.
Seyffart emphasizes the importance of completing two crucial steps for an ETF launch, including the approval of 19b-4 and the approval from the Division of Corporation Finance for the S-1s. Currently, there is no indication that the latter step has been completed. It is likely that there will be a significant time gap, potentially extending for weeks or even months, between approval and the actual launch of the ETF.
These developments indicate that Bitcoin ETF approval is most likely to occur in the first week of January, which continues to attract active investor participation.
The recent surge in BTC price coincides with traders opening new long positions. On-chain data provider Santiment reports that Bitcoin has surged by 37% in just two months, and during this rally, more traders have opened bullish positions than bearish ones, reaching the highest point in three months.
Furthermore, the total open interest on exchanges has significantly increased to $7.2 billion. While there is currently a high level of enthusiasm and fear of missing out (FOMO), it is hoped that Bitcoin will maintain its upward momentum even after these sentiments subside.
