Grayscale, VanEck, and ARK Get Approval for Bitcoin ETF Trading
Grayscale, VanEck, and ARK have received approval for their Bitcoin exchange-traded funds (ETFs) to trade on their respective exchanges. Although this is a positive sign, it does not mean that the Securities and Exchange Commission (SEC) has given the green light for these ETFs.
What Does This Mean?
If approved, the Grayscale Bitcoin Trust would trade on the NYSE Arca, while the VanEck Bitcoin Trust would trade under the Chicago Board Options Exchange (Cboe). The ARK 21Shares Bitcoin ETF would also be traded on the Cboe. These approvals are just a formality before potential listing if the SEC grants approval.
The Buzz around Bitcoin ETFs
A Bitcoin ETF approval would allow U.S. investors to gain exposure to Bitcoin without directly buying and holding the asset. Financial institutions have been applying for a Bitcoin ETF for 10 years, but previous applications have been rejected by the SEC due to concerns about investor risk.
Preparing for Potential Approval
The recent registrations from Grayscale, VanEck, and ARK, as well as Fidelity’s filing for its Fidelity Wise Origin Bitcoin Trust, indicate that issuers are getting ready in case their BTC funds are approved. While there is no official word yet from potential issuers or the SEC, there have been rumors and speculation about potential meetings between the SEC and exchanges.
Bitcoin Price Volatility
Recently, there was a flash crash in Bitcoin’s price following a bearish report speculating that the SEC will reject all pending Bitcoin ETF applications. However, at the time of writing, Bitcoin has recovered and is trading at around $44,163.
Hot Take: The Waiting Game Continues for Bitcoin ETF Approval
The recent approvals for Bitcoin ETF trading by Grayscale, VanEck, and ARK are a positive step forward, but the ultimate decision lies with the SEC. While there have been rumors of potential meetings between the SEC and exchanges, no official word has been released. The cryptocurrency community eagerly awaits a Bitcoin ETF approval as it would provide U.S. investors with easier access to Bitcoin. However, until then, the industry remains in a state of anticipation.
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