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Spot Bitcoin ETFs Could See Approvals by 2023: Bloomberg Intelligence

A proposed change that would require crypto exchanges to register with the SEC may be key to future approvals, two analysts said.Read MoreFeedzy

Spot bitcoin (BTC) exchange-traded funds (ETFs) could start to garner some approvals by mid-2023 given a proposed U.S. Securities and Exchange Commission (SEC) rule change that redefines exchanges, Bloomberg Intelligence analysts James Seyffart and Eric Balchunas wrote in a post to clients on Thursday.

“Expanding the definition of an exchange could eliminate the agency’s primary objection to the products by bringing cryptocurrency platforms under the SEC’s regulatory framework,” Seyffart and Balchunas wrote.

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

The two expect the change to be finalized sometime between November of this year and May of 2023.

Meanwhile, the SEC has continued to deny or extend reviews on all the applications for U.S. spot bitcoin ETFs that have been submitted to it, citing concerns about protecting investors.

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