SEC Initiates Process For Bitcoin ETFs
The United States Securities and Exchange Commission (SEC) has taken a crucial step in the potential acceptance of spot bitcoin exchange-traded funds (ETFs) by initiating the acknowledgment process for various applications. This development has sparked both excitement and uncertainty within the crypto and financial industries.
The SEC has initiated the acknowledgment process for spot bitcoin ETF applications. This sets the stage for the potential acceptance of the first such funds in the United Stateshttps://t.co/OrELxnolTt
— crypto.news (@itscrypto_news) July 15, 2023
Spots SEC’s ETF Acknowledgment
ETF Research Analyst at Bloomberg Intelligence, James Seyffart, was the first to notice the SEC’s acknowledgment move, sharing the news on Twitter. The applications in question come from prominent players in the asset management sector, including BlackRock, Fidelity, WisdomTree Funds, Invesco US, and VanEck. The list was officially published on the Nasdaq Stock Market LLC (NASDAQ) rulemaking page.
Notably, Galaxy Digital, ARK Investment, and BitWise have also received nods of acknowledgment from the SEC. However, it is crucial to note that this stage of the application process does not guarantee approval or rejection; it merely marks the beginning of the decision-making process. While the SEC has not yet given the green light for creating a spot bitcoin ETF, applicants remain optimistic. They are encouraged by the inclusion of surveillance-sharing agreements in their proposals, which aim to combat market manipulation, a primary concern for the SEC. They hope these agreements might sway the regulatory body towards granting approval, despite previous reluctance.
Spot Bitcoin ETF Approval
The significance of the SEC’s recent acknowledgments lies in the fact that the agency has formally started considering these applications. Industry experts and investors are eagerly awaiting the SEC’s response, as it could lead to the approval of the first-ever spot bitcoin ETF in the United States. Bitcoin ETFs have had a tumultuous journey in the country. The concept was first introduced in 2013 by the Winklevoss twins, founders of the Gemini cryptocurrency exchange, but faced rejection in 2017 due to concerns over market manipulation, liquidity, and asset custody.
The breakthrough came in 2021 when Canada approved the launch of the Purpose Bitcoin ETF, becoming the first country to offer such an asset. This move reignited interest and raised expectations among investors and industry participants in the United States, prompting the SEC to reconsider its stance on bitcoin ETFs. Since then, various asset management firms, including VanEck, Fidelity, and Bitwise, have submitted bitcoin ETF applications to the SEC, hoping for approval that could further legitimize and integrate cryptocurrencies into the traditional financial system.
