In a recent post on the X social media platform, Grayscale Investments CEO Michael Sonnenshein alluded to a major upcoming development, describing it as “the main event” that will follow a “ten-year dress rehearsal.”
This cryptic message is widely interpreted by the crypto community as a hint toward the imminent approval of a Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission, a move that could significantly impact the digital currency’s mainstream appeal.
SEC’s ETF decision looms
As reported by U.Today, there is a significant chance that the SEC might approve spot Bitcoin ETFs this week, with a crucial deadline of Nov. 17 looming.
However, leading ETF expert James Seyffart has predicted a more extended timeline for these approvals, tempering immediate expectations despite the closely watched deadline. “If we are indeed going to see Bitcoin ETF approvals for this wave, I think it’s more likely to happen closer to January than this current window,” he said.
Moreover, even if approvals are granted in the near future, the actual listing of Bitcoin ETFs could be delayed due to additional regulatory processes, potentially pushing the event closer to January, according to Seyffart.
Spot ETF hopes boost GBTC
The optimism surrounding the potential approval of a spot Bitcoin ETF has been reflected in the narrowing discount of the Grayscale Bitcoin Trust (GBTC).
The GBTC, which allows investors to trade shares in trusts holding Bitcoin, has seen its discount shrink to the lowest level since mid-2021, now at just over 10% below its net asset value.
This change in market sentiment is primarily fueled by the anticipation of Grayscale’s Trust converting into a spot ETF, a process long sought by the company and now under reconsideration by the SEC following a court order.