US ETF Race Heats Up as Major Institutions Enter the Fray
Summary:
The race to launch the first spot-traded Bitcoin exchange-traded fund (ETF) in the US is heating up, with major financial institutions like BlackRock, Fidelity, and VanEck entering the fray. The SEC has delayed its decision on all seven applicants, but analysts predict approval may come in early 2024. While the SEC has previously rejected spot Bitcoin ETFs due to concerns over market maturity and fraud, the involvement of major players like BlackRock has improved the chances of approval. Meanwhile, the likelihood of an Ether futures-based ETF gaining approval is over 90%, with a possible approval date in October.
The race to launch the first spot-traded Bitcoin exchange-traded fund (ETF) in the United States is heating up, with major financial institutions like BlackRock, Fidelity, and VanEck entering the fray. While the SEC previously approved a Bitcoin-linked Futures ETF, the current focus is on spot Bitcoin ETFs. Following Grayscale's recent legal victory against the SEC's review, there is growing optimism for the approval of these investment funds. BlackRock's interest in a spot Bitcoin ETF has prompted other institutions to refile their applications. Here are the key ETF applicants: BlackRock, WisdomTree, Valkyrie Investments, ARK Invest, VanEck, Fidelity/Wise Origin, Invesco Galaxy, Bitwise, and GlobalX. Bloomberg analysts now put the chances of approval for a spot Bitcoin ETF at 75%. The SEC has delayed its decision on all seven applicants, and analysts predict a resolution may not come until early 2024. The rejection of spot Bitcoin ETFs in the past was due to concerns over the market's maturity and potential for fraud and manipulation. However, with the involvement of major players like BlackRock, the chances of approval have improved. The SEC is more inclined to approve futures ETFs, which are based on futures contracts and are already heavily regulated. The rejection of spot ETFs is mainly due to concerns over market surveillance and asset safety. While the SEC oversees futures exchanges, there are no SEC-regulated spot exchanges. Some experts argue that futures ETFs are inferior to spot ETFs in terms of tracking error and that a spot ETF is safer for investors. Despite the SEC's reluctance, there is confidence that a spot BTC ETF will eventually be approved, especially with the support of major players like BlackRock and Fidelity. On the other hand, the chances of approval for an Ether futures-derived ETF are high, with Bloomberg analysts predicting a rate of over 90%. Approval for an Ether futures-based ETF is expected in October, which could have a positive impact on the crypto market.
Published At
9/4/2023 1:29:28 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.