SEC Expected to Approve Bitcoin ETFs, According to Crypto Leaders
All eyes are on the Securities and Exchange Commission (SEC) as it considers several applications for a spot Bitcoin exchange traded fund (ETF). According to industry leaders, the agency is likely to give the green light to these applications in the near future, leading to a surge in institutional capital inflow into Bitcoin.
Main Breakdowns:
- Galaxy Digital CEO Mike Novogratz predicts that a spot Bitcoin ETF will be launched within the next four to six months, based on insider information.
- Galaxy Digital, in partnership with Invesco, re-applied for a spot ETF in June, joining other firms in submitting new applications after BlackRock’s attempt.
- There are currently nine active Bitcoin spot ETF applications awaiting approval by the SEC.
- Investors anticipate that the approval of a Bitcoin ETF will attract significant institutional capital, potentially driving up the asset’s price.
- Industry players are vying for the first approval, aiming to capture a major share of the market.
Although the SEC previously approved ProShares’ Bitcoin futures ETF, it is speculated that this time, the agency may approve multiple Bitcoin ETFs simultaneously. This is due to the similar structures of the current batch of applications. Cathie Wood, CEO of ARK Investment Management, expects the SEC to approve multiple ETFs at once, rather than picking winners and losers.
Hot Take:
The SEC’s potential approval of Bitcoin ETFs could be a game-changer for the cryptocurrency market. If the predictions of industry leaders like Mike Novogratz and Cathie Wood come true, we can expect a significant influx of institutional capital into Bitcoin, driving up its price. This development could mark a new phase of mainstream adoption for cryptocurrencies.
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