Crypto news: The US Securities and Exchange Commission (SEC) has taken a significant step in the world of crypto, accepting applications for spot Bitcoin ETF from six major companies.
Among them is BlackRock, a financial giant in the investment management industry. The move marks the beginning of the SEC’s approval process for the proposals, a decision that could have a profound impact on the cryptocurrency market.
The SEC approves six proposed Bitcoin ETFs: here’s the latest news on the issue
The SEC also officially recognized applications from other well-known crypto and financial industry entities, such as Bitwise, VanEck, WisdomTree, Fidelity and Invesco.
The proposals of these companies were listed in the Federal Register on Tuesday and Wednesday, signaling their intention to bring spot Bitcoin ETFs to the market.
It is worth noting that the SEC has rejected numerous applications for spot Bitcoin ETFs in the past, citing concerns about anti-fraud measures and investor protection standards.
This has caused frustration among cryptocurrency enthusiasts and industry participants who eagerly awaited regulatory approval of such ETFs.
However, recent developments suggest that there may be a shift in the SEC’s stance toward spot Bitcoin ETFs.
Nasdaq, a major global exchange where BlackRock has proposed to list its ETF, announced earlier this month that it would address regulatory concerns by partnering with Coinbase, one of the largest US exchanges.
The collaboration aims to improve oversight and monitoring of trading activity in the underlying Bitcoin market, providing an additional layer of investor protection.
CBOE Global Markets has also submitted similar proposals with similar surveillance arrangements, further demonstrating the growing interest in bringing spot Bitcoin ETFs to investors.
It is worth mentioning that the approval of the first Bitcoin futures ETF in October 2021 contributed to the surge in the price of Bitcoin to an all-time high of $69,000 in November 2021.
ETFs in detail and why they could be the turning point in the crypto market
Spot ETFs work by directly tracking the price of the underlying asset, in this case Bitcoin. This allows investors to gain exposure to the price movements of the cryptocurrency without physically owning it.
On the other hand, futures-based ETFs track the price of Bitcoin futures contracts, which introduces additional complexity and risk for investors.
The SEC’s acceptance of these proposed spot Bitcoin ETFs indicates a potential change in the cryptocurrency regulatory landscape.
If approved, these ETFs would offer traditional investors a more accessible and regulated way to invest in Bitcoin, potentially opening up the cryptocurrency market to a wider audience.
While this development is promising, it is critical to keep in mind that the SEC review process can be extensive and involves rigorous scrutiny of each proposal.
Regulators are likely to assess the proposed ETFs’ compliance with existing securities laws, investor protection measures, and risk management protocols.
As a result, it may take some time before a final decision is made.
For cryptocurrency enthusiasts and investors, acceptance of these proposals is a significant step forward.
However, it is essential to remain patient and vigilant as the regulatory process unfolds. The outcome of the SEC’s review will undoubtedly determine the future of spot bitcoin ETFs and potentially redefine the cryptocurrency investment landscape in the United States.