• This week marks a pivotal moment in the years-long effort to launch Bitcoin-backed exchange-traded funds (ETFs) in the US, with critical deadlines and decisions expected. Bitcoin ETF issuers had until Monday morning to submit any final adjustments to their pending applications. The US Securities and Exchange Commission (SEC) has until January 10 to take action on at least one of these applications, potentially making multiple announcements simultaneously. For a spot-backed Bitcoin ETF to commence trading, two prerequisites must be met: SEC approval of 19b-4 filings by the listing exchanges and endorsement of the S-1 forms from issuers like BlackRock and Fidelity. If both approvals are granted, trading could commence shortly after.

• Bitcoin proponents anticipate that ETFs backed by the leading cryptocurrency could be a transformative development, attracting substantial inflows from both retail and institutional investors. The potential impact is perceived to be significant, with billions of dollars at stake. However, past SEC leadership, including Gary Gensler and Jay Clayton, expressed concerns about investor protection and market manipulation, resulting in prior refusals to greenlight Bitcoin ETFs. Speculation has risen since August, following the SEC's loss to Grayscale Investments, suggesting the regulator might yield to increasing demand for the product. The market's anticipation of regulatory approval fueled a 160% surge in Bitcoin last year, although it has yet to reclaim the record highs set in November 2021.