Finance giants, including BlackRock and Fidelity Digital Assets, have recently shown interest in launching such ETFs, infusing enthusiasm in the crypto market and positively impacting the market
The US Securities and Exchange Commission (SEC) has reportedly put six spot Bitcoin exchange-traded fund applications under review, marking the first step before officially approving or declining them.
Finance giants, including BlackRock and Fidelity Digital Assets, have recently shown interest in launching such exchange-traded funds, infusing fervour in the crypto market and positively impacting the market.
As reported by Reuters, the US securities regulator has formally acknowledged the applications of BlackRock, VanEck, WisdomTree, Fidelity Digital Assets, Bitwise, and Invesco, all of which filed to launch a spot BTC exchange-traded fund in the US.
In spite of earlier efforts from other firms, the SEC has not approved that type of product.
While the SEC is still considering its decision regarding introducing a spot BTC exchange-traded fund in the US, it has already given a positive nod on a futures one. It approved the ProShares Bitcoin Strategy ETF in October 2021.
Having BlackRock’s name among the candidates with aspirations to release such a product appeared like a game changer. After all, the firm has filed 576 exchange-traded fund applications with the Securities and Exchange Commission throughout its history, with just one denial.
Many experts believe that this time the SEC will eventually say “yes” to a spot BTC exchange-traded fund, with one example being Jay Clayton – former Chairman of the US Securities and Exchange Commission. He claimed that the agency will most probably approve the product should the interested parties prove it is safe enough for investors.
If you can demonstrate that the spot market has similar effectiveness to the futures market, it would be difficult to withstand approving a Bitcoin exchange-traded fund, he added.
Galaxy Digital’s founder Mike Novogratz has a similar view. He says that such approval could fuel mass adoption by investors who were not able to join the ecosystem earlier.
