Crypto Analyst Optimistic That Bitcoin ETF Will Be Approved By Regulators In January 2024

Analysts from Bloomberg predict the chance of Bitcoin ETF will start trading early next year. (Photo; Doc. Criptonoticias)

JAKARTA - Eric Balchunas and James Seyffart, analysts from Bloomberg, recently expressed their optimism about the exchange-Trad Fund (ETF) exchange-traded approval opportunity in January 2024.

They highlight the latest update on the Bitcoin spot ETF prospectus submitted by Ark Invest and 21Shares. This update is considered a positive sign of constructive collaboration with the Securities and Exchange Commission (SEC), which is often a strong indicator for regulatory approval.

"We believe there is a 90% chance to get approval before January 10 deadline," Balchunas and Seyffart said in their notes.

Both explained that the prospectus update covered at least five additional pages of information, suggesting that the SEC requested further clarification on its Bitcoin spot ETF proposal.

The intensive interaction between sponsors and regulators is considered commonplace in the launch of new financial products. However, for the Bitcoin spot ETF app, this is a new development that demonstrates the SEC's commitment to getting a better understanding of Ark Invest's proposals.

Although many Bitcoin ETF proposals have been rejected by the SEC over the past few years, Balchunas and Seyffart believe that positive changes in crypto market surveillance as well as falling price volatility could affect the SEC to approve this Bitcoin ETF in the next few months.