Former BlackRock director estimates Bitcoin spot ETF to be approved by April 2024

• The ex-director of BlackRock, Steven Schoenfeld, stated that the SEC would likely approve spot Bitcoin ETF after “three to six months”.
• Per Bloomberg ETF analyst Eric Balchunas, all filings’ approvals are delayed till January.
• The Grayscale Bitcoin Trust discount contracted this week, ahead of the October 13 approval deadline.

Bitcoin spot ETFs have been the talk of the crypto town for weeks now, but the Securities and Exchange Commission’s (SEC) decision to delay their approval stands to be an issue. However, according to the former managing director of BlackRock, things might start looking up soon.

Bitcoin spot ETFs to be approved by April 2024

Steven Schoenfeld, the former executive of the world’s biggest asset management firm, BlackRock, has given an estimate as to when the recent Bitcoin spot ETF filings could be approved by the SEC. According to Schoenfeld, the regulatory body is likely going to take another “three to six months” before any filing sees the light of the day.

Speaking at a panel discussion, the former managing director noted that even though the SEC might delay its decision, it will likely approve all the filings at once. This would be done to ensure no applicant receives the first mover advantage. The timeline set out by Schoenfeld delays the decision to January 2024 or April 2024 at the most. 

To add to that, this is Schoenfeld’s optimistic timeline, which improved over nine to 12 months owing to the change in SEC’s behavior. Despite delaying the filings, the Commission is maintaining an open dialogue, actively engaging with issuers to fine-tune their filings. 

Furthermore, the recent win of Grayscale in its lawsuit against the SEC regarding the rejection of its request to convert Grayscale Bitcoin Trust (GBTC) into an ETF is adding to the optimism. Since the Commission is now compelled by the court to fairly approve the conversion filing, chances are other ETF applications will also be approved.

According to Bloomberg ETF analyst, Eric Balchunas, for now, the regulator has delayed its decisions on all spot ETFs until January. The next move by the SEC will probably be appealing the court’s decision in the Grayscale lawsuit, the deadline for which is set for October 13.

Grayscale Bitcoin Trust continues its uptrend

The premier trust of Grayscale, GBTC, has observed immense improvement in the past four months since the discourse surrounding Bitcoin spot ETFs first began. The discount to Grayscale Bitcoin Trust’s NAV (Net Asset Value) has contracted from 44.03% in mid-June to 19.90% at the time of writing.

Grayscale Bitcoin Trust discount to NAV

While investors are still at a loss, the contraction serves as a significant improvement to their portfolios. This improvement will likely continue as the likeliness of GBTC’s conversion into an ETF increases down the line.