SEC could approve spot Bitcoin ETFs as early as 2023 – Bloomberg analysts

Eric Balchunas and James Seyffart, exchange-traded fund analysts for Bloomberg, said a proposed rule change with the U.S. Securities and ...



Eric Balchunas and James Seyffart, exchange-traded fund analysts for Bloomberg, said a proposed rule change with the U.S. Securities and Exchange Commission could be the catalyst for the regulator’s approval of a spot Bitcoin ETF in mid-2023.

In a tweet on Thursday, Balchunas noted Crypto platforms could fall under the SEC’s regulatory framework if the committee were to approve an amendment to change the definition of “exchange” proposed in January. The rule change would be to modify the Exchange Act to include platforms “that make any type of security available for trading” – apparently including cryptocurrencies, making their investment vehicles more palatable to the regulator.

“Once crypto exchanges are compliant, the SEC’s primary reason for denying spot Bitcoin ETFs would no longer be valid, likely paving the way for approval,” the analysts said.

Balchunas and Seyffart said that under this amended definition of “exchanges,” which could be finalized between November 2022 and May 2023, the SEC could approve spot crypto ETFs, including those exposed to Bitcoin (BTC). The regulator has so far rejected all rule changes allow listings of spot BTC ETFs on exchanges, despite approval certain investment vehicles related to Bitcoin futures in 2021.

Related: Is the price of Bitcoin mimicking the 2017 bull run?

Many US lawmakers and industry leaders have pushed back against the SEC’s apparent reluctance to approve a spot Bitcoin ETF. In November, Representatives Tom Emmer and Darren Soto sent a letter to SEC Chairman Gary Gensler challenging the regulator’s reasons for refusing to list the shares of a spot Bitcoin ETF. Bitfury CEO and former Acting Comptroller of Currency Brian Brooks also told a hearing in December that the US was “unquestionably” late on approving crypto ETFs.