SEC Discussions on Bitcoin ETFs Could Herald Significant Market Growth
Summary:
The U.S. Securities and Exchange Commission (SEC) is reportedly in discussions about Bitcoin (BTC) exchange-traded funds (ETFs) proposed by several asset managers. The SEC has yet to approve a spot cryptocurrency exchange-traded product, but if green-lighted, it is expected to attract considerable growth to the crypto market. If the SEC grants approval, this may facilitate access for traditional finance investors while encouraging substantial institutional capital inflow. The SEC's final decision remains uncertain, but if approved, simultaneous fund endorsements from various firms could be seen as early as January.
The United States Securities and Exchange Commission (SEC) is ostensibly in discussions regarding the facets of Bitcoin (BTC) exchange-traded funds (ETFs) suggested by asset management firms. As per a report on Dec 7 by Reuters, insiders from the industry revealed that the SEC is in talks with certain asset managers over core procedural details about having a spot Bitcoin ETF listed on U.S. exchanges. Until now, the commission hasn’t approved any spot cryptocurrency exchange-traded product, instead opting to delay decisions on applications for as long as is legally permissible. SEC memorandums from November indicated that the commission had independent discussions with representatives from BlackRock and Grayscale. Additionally, Hashdex, Fidelity, ARK 21Shares, Invesco Galaxy, and VanEck have lodged applications for spot BTC or Ether (ETH) ETF listings. Senior legal counsel at Mercuryo, Adam Berker, opines that the expected approval of these ETFs will have a positive influence on the crypto market, potentially sparking dramatic growth. He asserts that having ETFs approved will facilitate traditional finance investors to access crypto assets more easily. Further, significant institutional capital may be funneled into the market with endorsement from big players, such as BlackRock and Fidelity. However, it remains uncertain whether the SEC will decide in favor of a spot Bitcoin ETF. Should they decide to grant approval, Bloomberg ETF analyst James Seyffart suggests that the commission may endorse funds from several firms simultaneously as early as January. Critics both inside and outside the crypto sector have disparaged SEC Chair Gary Gensler's stance on classifying certain tokens as securities. The SEC is presently involved in legal action against Terraform Labs, Ripple, Coinbase, and Binance. In his ex-FTX US statement, Brett Harrison foretells that Bitcoin ETF approval will result in broken records.
Published At
12/7/2023 9:02:20 PM
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