Crypto industry can now breathe a big sigh. It appears that a federal U.S. regulatory agency will allow the largest asset managers in traditional finance and other firms to list and trade shares for a digital asset which gives retail and institutional investors access to the price. The bitcoin ETF drama would not be complete without drama.

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The Narrative

The official X account (formerly Twitter) of the U.S. Securities and Exchange Commission announced on Tuesday afternoon Eastern Time that all outstanding requests to list and trade bitcoin ETF shares had been approved. The problem was none of the applications were approved. Instead, someone “compromised” the account and posted a manipulated graphic.

The Cboe BZX Exchange began taking additional steps on Wednesday to list and trade spot bitcoin ETFs. This suggests that we are close to approval.

Cboe says Bitcoin ETFs will start trading Thursday, even though the SEC hasn’t approved them yet

Why it matters

Spot bitcoin ETFs are seen as vehicles that both retail investors (through their everyday brokerage accounts) and institutions (because they are registered securities) can access.

Breaking it Down


Tea Leaves

There are a lot of signs that a bitcoin ETF will be approved today, or at least later in the day. Cboe filed an acceleration request to register it would list and trade various ETFs. On Tuesday, it sent out letters stating that it intended to start trading as soon as approvals were received.

Fidelity’s brokerage is already creating pages for ETFs which could launch as early as Thursday morning. E-Trade did the same later, suggesting that they are also preparing for their customers to buy and trade these products.

These signs, along with the constant back and forth between SEC officials, issuers and other SEC officials, all suggest that an ETF could launch soon. If one ETF is approved, the rest of them will likely be.


Confusion is rife in

This isn’t crypto without some absurd drama. The SEC’s X/Twitter account was compromised on Tuesday. A tweet stating that the ETFs had been approved resulted. X’s Safety team stated that an unknown party gained control of the phone number linked to the @SECgov Account and that two-factor authentication was not enabled.

As of the date of this article, SEC officials had not yet responded to a comment request on what occurred or the X-statement.

(Editor’s Note: I strongly recommend that you enable two-factor authentication for your accounts in the current age. Hardware keys such as Yubikey, or software tools such as Authy and Google Authenticator are all good options. However, token-based 2FA works better than text message-based 2FA. (This is not a recommendation of any tool. Just a few examples.

Some individuals misinterpreted Wednesday’s filings by Cboe, announcing their acceleration requests. They thought they were approvals. The filings are not approvals – just a procedural matter. However, the filings suggest that they may occur.


What We Might See

We may soon learn if an ETF has been approved. It’s coming up soon. We’ll officially know when the SEC declares an effective registration, which is likely to first appear in its EDGAR Database.

Last week, a SEC spokesperson informed me that “if the Commission declares a Registration Statement effective, this is reflected on EDGAR.” “Any Commission orders under 19b-4 will be published on our website, and then in the Federal Register.”

It will most likely happen between 4 and 5:30 p.m. This will probably happen between 4 p.m. ET (22:30 UTC). Eric Balchunas, a Bloomberg Intelligence analyst, set a time range between 4-6 pm. This is the magic time.

A person affiliated with an aspiring issuer stated that the recognitions could come earlier than the time frame, giving issuers the chance to file amended statements after the effective date announcing their intent to start trading on Thursday morning. These statements could come Thursday morning, depending on the timing.

We’ll be in a strange limbo for the next few hours, where everything suggests that an approval will soon come, but there is no certainty.

  • The Commodity Futures Trading Commission’s Technology Advisory Committee voted to recommend a href=”https://www.coindesk.com/policy/2024/01/09/defi-identity-should-be focusing on us policymakers cftc says/”>u>a report on decentralized finance/u>/a> to the broader commission. ET) The Commodity Futures Trading Commission Technology Advisory Committee voted a recommendation to the broader Commission on decentralized finance.

  • 19:00 UTC (2 p.m. ET) A House Financial Services subcommittee is holding an hearing on the Financial Stability Oversight Council, where crypto will come up. The Financial Stability Oversight Council will be discussed by a House Financial Services Subcommittee.

  • The Air Current reports that an Alaska Airlines Boeing 737 MAX 9 aircraft suffered a plug-door failure shortly after takeoff. It decompressed explosively and made an emergency landing a short time later. The Federal Aviation Administration grounded all MAX 9 aircraft in the United States pending further inspections. No serious injuries were reported. Alaska and United’s preliminary inspections have already detected loose bolts. (Disclosure – I own Boeing shares).

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Next week, we’ll see you!

Nick Baker is the editor.