Race of Spot Bitcoin ETFs
The Securities and Exchange Commission (SEC) is anticipated to approve the spot Bitcoin ETF, which has made the cryptocurrency industry enthusiastic. However, the decision-making process has generated some uncertainty.
In recent months, there have been renewed hopes for approval as several prominent players in the industry have filed applications for the Bitcoin ETF. These proposals differ from previous ones in that they focus on physically-backed Bitcoin ETFs.
Recent Developments on Ongoing Hype
Bloomberg ETF analyst Eric Balchunas said that there is still a 10% chance that the SEC could reject the approval of the Bitcoin ETF. But there is very little chance that approval will get rejected this month, which is most likely due to the Securities and Exchange Commission wanting “more time” rather than a flat-out rejection.
Analysts predict that the amount of time and examination put in by the SEC and Bitcoin ETF Issues means it’s unlikely that a Bitcoin ETF would be rejected outright at the last moment. If the SEC issues a complete denial, fund issuers might follow in the footsteps of crypto asset manager Grayscale and launch a separate lawsuit against the regulators.
Hot Take
Rejection of a Bitcoin ETF was urged by two parties, both stating a decentralized nature could make it appealing to authorization regimes seeking to evade sanctions and exert greater control over their citizens. The SEC has some concerns to clarify.
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