Bitcoin Spot ETF: Bloomberg Analyst Offers Insights On Approval Timing

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Dec 21

James Seyffart, a prominent research analyst for Bloomberg Intelligence has offered his take on the timeline approval of a Bitcoin Spot Exchange-Traded Fund (ETF) and the aftermath of the product.

James Seyffart On Bitcoin Spot ETF Approval Timeline

Members of the crypto community have been getting quite curious about the Bitcoin Spot ETFs due to the increasing anticipation surrounding it. One of the main questions swelling around the community is when they will start trading on the open market if approved.

Bloomberg analyst James Seyffart shared his two cents on this recently, revealing his optimism about the approval timeline of the BTC spot ETF on X (formerly Twitter). Seyyfart highlighted in his post that both the 19b-4 and S-1 fillings are crucial for comprehensive consideration of the product.

In his opinion, getting clearance for the 19b-4 set of ETFs will not be too difficult. However, the challenging part is determining when the ETF can begin trading following approval.

Seyffart also asserted that "there is no way to know for certain" when that will happen. However, he further estimated that it might take "one or two days for trading to go live after approval, or even weeks later."

Furthermore, for the S-1s, Seyffart has expressed a feeling of uncertainty for the applications. According to him, he is not sure if the ETFs under the S-1 filings are prepared for approval at this junction.

The analyst explained that the S-1s will get approved if only the United States Securities and Exchange Commission (SEC) signs it off. He further added that if both the 19b-4s and the S-1s get approved, then the space between approval and launch will be little.

So far, Seyffart is confident that both sides can iron out the specifics, given that companies like Hashdex and BlackRock are meeting with the SEC this week.

He stated:

That said, Based on all these meetings and re-filings I have to assume both the issuers and the SEC are working hard to get things finished.

$100 Billion Inflow Speculation Following Approval

Along with the anticipation following a potential approval of a Spot Bitcoin ETF is how much could flow into the ETFs. Top mathematician Fred Krueger has highlighted a potential $100 billion inflow into Bitcoin if it gets approved.

Krueger's projections caused quite a stir in the crypto community, which led to a response from Seyffart. The analyst has issued a public warning to investors cautioning them against setting their expectations too high.

He claimed that it is "extreme" to forecast this kind of inflow, considering how long Gold has been available. He further went on to say that despite gold has been available in the US since 2004, its worth in the nation is currently $95 billion.