BTC ETFs Have ‘Brief Window’ For SEC Approval

12 Bitcoin ETFs Have ‘Brief Window’ For SEC Approval Starting November 10th

In a pivotal development, BTC ETFs SEC Approval, creating a critical moment for cryptocurrency investments. This limited timeframe has sparked a flurry of activity among financial institutions eager to capitalize on the opportunity. As the SEC reviews these proposals, understanding the implications for BTC ETFs is crucial for investors looking to stay ahead in the evolving crypto market.

According to Bloomberg analysts James Seyffart and Eric Balchunas, the United States Securities and Exchange Commission could approva all 12 pending spot bitcoin exchange-traded fund (ETF) applications within the next eight days. 

However, the Bloomberg ETF analysts stressed this was only a possibility and that it was more likely for the applications to be approved after Jan 10th next year. 

Their rationale behind the ETFs being potentially approved in the next 8 days was that the SEC had issued delay orders for “BlackRock, Bitwise, VanEck, WisdomTree, Invesco, Fidelity & Valkyrie at the same time” while selecting Nov. 8 as the last day of the comment period. 

It’s also possible that the SEC could approve several between now and Nov. 17, but require all the funds to begin trading on the same day. 

“Delay orders were issued by the SEC for BlackRock, Bitwise, VanEck, WisdomTree, Invesco, Fidelity & Valkyrie at the same time,” Seyffart wrote on Twitter. “If the agency wants to allow all 12 filers to launch – as we believe – this is the first available window since Grayscale’s court victory was affirmed.” 

A Bitcoin ETF would allow investors to gain exposure to the world’s largest cryptocurrency without having to hold the asset themselves. Instead, they could buy shares that would be backed by Bitcoin that’s been bought by the issuer. 

Seyffart pointed out another caveat: Even if the SEC approves a rule change that would allow an ETF to trade, that’s totally separate from approving a fund’s registration statement. Both filings would need to be approved before any of the pending Bitcoin ETFs could begin trading. 

Even if it could be months before a Bitcoin ETF is trading, the recent price rally proves investors are optimistic about it. BTC gained over 20% in October, buoyed by the optimism that the long-awaited approval of a spot Bitcoin ETF might finally materialize. 

But a potential spot Bitcoin ETF isn’t just about making the BTC price go to the moon. 

Analysts have suggested that a spot Bitcoin ETF could attract between $50 billion to $100 billion in inflows over the next five years, which could cause a significant shift in the asset’s market dynamics. That could be good and bad news for Bitcoiners, some of whom said they’d be happy for Wall Street titans not to sit on big piles of their favorite asset. 

In the past six weeks alone, crypto funds have attracted $767 million worth od deposits, according to crypto asset manager CoinShares.

Crypto Exchange CoinSpot Reportedly Suffers $2M Hot Wallet Hack

According to a recent post by the on-chain sleuth ‘ZachXBT,’ Australian crypto exchange CoinSpot has been hacked for $2.4 million in a “probable private key compromise” involving at least one of its hot wallets. 

Specifically, ZachXBT pointed at two transactions as evidence. The first transaction shows 1,262 ETH leaving Coinspot’s wallet for a presumed attacker’s address and the second one shows that another 20.99 ETH was sent to the same address.

The attacker’s wallet then seems to swap the ETH for wrapped bitcoin, USDC and USDT, using Uniswap, THORchain and WBTC smart contract. 

A search of Bitcoin explorer BTCScan data showed the owner of the four Bitcoin wallets distributing the allegedly ill-gained BTC to multiple new wallets, transferring smaller divisions of the funds to additional new wallets each time. 

This is a tactic commonly leveraged by attackers to prolong the investigation process – making it more difficult to track the entirety of the stolen funds. 

CoinSpot was established in 2013 and currently stands as Australia’s largest crypto exchange by reported user numbers, serving around 2.5 million customers. The exchange is regulated by the Australian financial watchdog, the Australian Transaction Reports and Analysis Centre, and was granted an Australian Digital Currency Exchange License by the regulator.

Binance Rolls Out Its First-Ever Self-Custody Web3 Wallet

At the Bincance Blockchain Week conference in Istanbul, CEO Changpeng ‘CZ’ Zhao announced the crypto exchange was launching ‘Binance Web3 Wallet’ – a non-custodial hot wallet available to all users via the Binance mobile app. 

To ensure security and recovery, the wallet reportedly uses MPC technology which breaks the user’s private keys into three smaller parts known as key shares. 

CZ stated, 

“Web3 wallets represent more than just storing digital assets; they are an integral part of the Web3 framework, empowering individuals with the ability for self-sovereign finance […] Binance’s Web3 Wallet lowers the barriers of entry for users to achieve full self-custody of their assets, and it is an important, convenient bridge towards DeFi empowerment. Ultimately, our priority is to ensure users can explore Web3 with us within a user-friendly and protected environment.” 

Binance’s Web3 wallet will compete with the likes of MetaMask and Trust Wallet, the latter of which was acquired by Binance in 2018. Binance listed a futures market for TrustWallet’s native token (TWT) earlier this week. The TWT price slid after the announcement, taking the 24-hour change to a 7% drop. 

The new wallet uses Trust Wallet’s Wallet as a Service (WaaS) technology, also announced today. That product is intended to shorten the development time for companies looking to introduce Web3 wallets by offering a range of services including asset management and cross-chain transfers. 

Other competing centralized exchanges, such as Coinbase and OKX, also have Web3 wallets. 

Users can create a wallet through Binance’s mobile app, which will also serve as the venue for DeFi activities like staking, lending, and borrowing. A Binance spokesperson told CoinDesk that users are required to complete KYC to access the wallet. 

Wallets are common targets for hackers and explooiters, as once a private key is obtained by a hacker, all funds can be irreversibly drained. 

Binance hopes to remedy that with multi-party computation (MPC), which removes the need for users to memorize seed phrases without compromising the benefits of security and self-custody. MPC involves a private key being broken up into three parts called key shares, with two of the three key shares being controlled by the wallet owner.

The announcement that BTC ETFs have a ‘brief window’ for SEC approval has stirred significant interest within the financial community. This development is seen as a potential turning point for the mainstream adoption of Bitcoin as an investment asset. If the SEC grants approval, BTC ETFs could open the doors for more institutional and retail investors to enter the cryptocurrency market, driving substantial growth and liquidity.

Financial experts are closely monitoring the SEC’s decisions, as the approval of BTC ETFs could validate Bitcoin as a legitimate investment vehicle. The BTC ETFs SEC approval process is rigorous, focusing on issues such as market manipulation, liquidity, and investor protection. The SEC’s stance on these matters will likely influence future regulatory approaches to cryptocurrency investments, setting a precedent for other digital asset ETFs.

As BTC ETFs await SEC approval, financial institutions are preparing to launch innovative products designed to attract a broader investor base. These products aim to provide easier access to Bitcoin investments through traditional financial markets. The potential approval of BTC ETFs by the SEC is expected to enhance market transparency and provide a regulated environment for Bitcoin trading, thereby increasing investor confidence.

However, the path to BTC ETFs SEC approval is fraught with challenges. The SEC has previously expressed concerns about the volatility and market manipulation associated with Bitcoin. Addressing these concerns will be crucial for any ETF proposal seeking approval. The financial community remains optimistic, yet cautious, as they await the SEC’s final decision on BTC ETFs.

The implications of BTC ETFs SEC Approval extend beyond the immediate financial markets. It could pave the way for more regulatory clarity and innovation in the broader cryptocurrency ecosystem. The approval would signal a significant shift in how regulatory bodies view digital assets, potentially leading to increased acceptance and integration of cryptocurrencies into mainstream financial systems.

In conclusion, BTC ETFs have a ‘brief window’ for SEC approval, marking a critical juncture for the cryptocurrency market. The outcome of this approval process will have far-reaching effects on investor sentiment, market dynamics, and the future of digital asset investments. Staying informed about the latest developments and understanding the SEC’s criteria for approval will be essential for investors looking to capitalize on this opportunity.