Bitcoin ETF Launch Could Face Month-Long Delay After SEC Approval

Two-Step Process for ETF Launch

Analysts have noted that even if the United States Securities and Exchange Commission (SEC) approves a spot Bitcoin exchange-traded fund (ETF), it could take up to a month before the actual launch. This expected delay is due to the two-step process of launching an ETF. First, the issuer must receive SEC approval from the Trading and Markets division on its 19b-4 filing. Then, they must also receive approval from the Corporate Finance division on the S-1 filing or prospectus. Market analysts believe that the launch of a Bitcoin ETF may be delayed if the SEC approves the 19b-4 approvals before the prospectus documents are signed off.

Possible Weeks or Months Between Approval and Launch

Bloomberg ETF analyst James Seyffart has pointed out that even if the 19b-4 filing is approved, the S-1 approval process could still take weeks or even months before the ETF is launched. This means that there could be a significant gap between approval and the actual availability of the Bitcoin ETF to investors.

90% Chance of Approval, But Not Until Next Year

The SEC has an eight-day window, from November 8 to November 17, to approve the first spot Bitcoin ETF. While market pundits have increased the chances of approval to 90%, they believe that approval is unlikely to happen until early next year. This gives issuers additional time to complete the necessary filings and preparations for the launch of their Bitcoin ETFs.

Race for the First Spot Bitcoin ETF

The race for the first spot Bitcoin ETF in the U.S. started with BlackRock, the world's largest asset manager, filing its application. Other asset managers, including Fidelity, also filed for spot Bitcoin ETFs, but most faced rejections or withdrew their applications. However, market commentators are optimistic about the 2023-2024 cycle, predicting a possible approval for the spot ETF with a high chance of success.