The SEC has officially received and begun reviewing a spot Bitcoin ETF application from Grayscale Investments, following a similar submission from Bitwise Asset Management the day before.
Although the SEC’s acknowledgment is a significant victory for the Bitcoin community, it is crucial to keep in mind that the approval procedure is still underway. Before making a choice, the SEC must thoroughly analyze the proposal.
ETFs are a sort of investment vehicle that follows a certain index or portfolio of assets. A cryptocurrency ETF is a fund that monitors the price of one or more cryptocurrencies in the realm of cryptocurrencies.
The SEC is reportedly now analyzing the applications for several Bitcoin investment vehicles, according to a statement published on Friday, July 14.
This action demonstrates that these businesses are willing to serve the demands of their customers and are aware of the rising need for regulated Bitcoin investment vehicles.
The “surveillance-sharing” deal between BlackRock and Coinbase is an important milestone since it demonstrates that these two influential financial companies are prepared to cooperate to uphold the integrity of the Bitcoin market. This indicates that the traditional banking industry is accepting cryptocurrencies more, which is encouraging for the future of cryptocurrencies.
The diverse approaches and proposals from different companies vying to launch a Bitcoin ETF in the United States will give the SEC a better understanding of the risks and benefits of this product. This will increase the chances of the SEC approving an ETF, as it will be able to choose the filing that best addresses its concerns.
The SEC has not yet permitted a spot Bitcoin ETF, while Canada approved three such products. Each of these funds tracks the open market price of Bitcoin by investing directly in spot Bitcoin. This might open the door for the US Securities and Exchange Commission to approve spot Bitcoin ETFs as evidence that the regulatory landscape for cryptocurrencies is changing.