Spot Bitcoin ETF approved: Issuer reaches major milestone
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The issuer of a spot Bitcoin (BTC) exchange-traded fund (ETF) has made significant progress towards regulatory approval.
according to arrive The U.S. Securities and Exchange Commission (SEC) provided positive feedback on key documents and requested that no additional feedback be provided on several filings, Bloomberg reported.
The agency’s commissioners plan to vote on the exchange rule filing this week.According to reports, at least one applicant, asset manager BlackRock expect The U.S. Securities and Exchange Commission will approve its application for a spot Bitcoin ETF on Wednesday, January 10.
Last week, the SEC directed multiple exchanges and issuers interested in listing these ETFs to submit the final version of a key filing by Friday, January 5.
Multiple reports noted that the SEC provided no further feedback on several companies’ filings following the latest amendments.
The development marks progress on the road to regulatory approval in the coming days and paves the way for the launch of a spot Bitcoin exchange-traded fund, which has been the focus of BlackRock, Fidelity, Ark Invest, WisdomTree, VanEck Target and Valkyrie from many other companies.
A total of 14 asset management companies currently hope to obtain SEC approval for spot Bitcoin ETFs. The growing number of applicants and improvements in recent submissions indicate growing optimism about the approval process.
Analysts also predict that the Bitcoin ETF will overcome any potential obstacles, including challenges related to cryptocurrency market activity, further signaling optimism about approval.
Spot Bitcoin (BTC) ETF Barriers
Since 2013, several asset managers have encountered challenges when trying to launch Bitcoin spot ETFs. The U.S. Securities and Exchange Commission (SEC) routinely rejects them, arguing that the products do not adequately protect investors from the risks of fraud and manipulation.
But by 2024, the culmination of recent developments suggests that the approval of a Bitcoin spot ETF is likely to become a reality.
The asset manager has updated its filings to guarantee that its assets will be held by banks in separate accounts and will not be commingled with those of the firm or other clients. This has led to expectations that the SEC is actively engaging with these companies rather than planning to reject their applications outright.
Last August, a federal appeals court ruled in favor of Grayscale Investments, which sought to convert its $16.7 billion Bitcoin Trust (GBTC) into a Bitcoin ETF. The SEC had the opportunity to appeal the ruling but chose not to, signaling a possible shift in the regulator’s stance on Bitcoin ETFs.
The SEC has historically been cautious about approving Bitcoin ETFs due to concerns about market manipulation and issuers’ ability to protect investors. However, recent developments suggest that the regulatory environment may become more conducive to approving a spot Bitcoin ETF.
Despite the challenges, the approval of the Bitcoin spot ETF remains an important milestone for the cryptocurrency industry. It will increase Bitcoin’s accessibility, liquidity, demand, and price, potentially attracting millions of new investors and leading to greater interest from larger institutional players.
