“The U.S. SEC is currently reviewing 8-10 filings for potential bitcoin ETF products, indicating a growing interest in mainstream acceptance of cryptocurrencies.”
The U.S. Securities and Exchange Commission (SEC) is currently reviewing eight to 10 filings for possible exchange-traded products (ETPs) tied to bitcoin. SEC Chair Gary Gensler stated that these filings could potentially come before the commission, but he did not provide any specific timeline for their consideration.
Speculation around the approval of a spot bitcoin exchange-traded fund (ETF) has driven bitcoin’s recent rally. An ETF would allow investors to gain direct exposure to the cryptocurrency through an exchange-listed product. So far, the SEC has only approved ETFs linked to bitcoin futures contracts.
Cathie Wood’s ARK Invest application is reportedly at the forefront of the line, with the SEC comment period for that application set to expire on January 10, 2024. Other firms, including BlackRock, Bitwise, WisdomTree, Fidelity, and Invesco, also have pending applications for bitcoin funds in the U.S.
The anticipation for spot ETFs has increased after the SEC chose not to appeal a court ruling that deemed the rejection of Grayscale Investments’ application to convert its existing bitcoin trust into a spot bitcoin ETF as incorrect. The court has ordered the SEC to reconsider its decision.
Bitcoin’s price was down 1.6% at $33,958 in mid-day trading, after experiencing a gain of almost 14% earlier this week.
As the SEC continues its review process, the market eagerly awaits the potential approval of these bitcoin ETPs, which could have significant implications for the cryptocurrency industry.
About the author: Bansari Kamdar is a financial markets reporter for Reuters. She covers global financial markets and writes daily market reports on equities, bonds, and currencies. With a background in economics and recognized for her excellence in political economy, Bansari has contributed to reputed global publications such as The Diplomat, Boston Globe, Conversation, Huffington Post, and more.