The U.S. Securities and Exchange Commission has until January 10 to decide on Ark Invest & 21Shares’ spot application for a bitcoin ETF.
The US Securities and Exchange Commission (SEC) will have until January 10 to decide on Ark Invest & 21Shares’ application for a bitcoin spot ETF. Hopes surrounding the SEC’s validation of this type of product partly explain the rise in bitcoin’s price in recent months. The cryptocurrency queen has gained 150% in one year.
Is the SEC About to Approve the First Spot Bitcoin ETF? The scenario seems increasingly likely to some. “The regulator has stepped up the pace of its meetings with spot BTC ETF applicants such as Grayscale and BlackRock, which have already met with it three times behind closed doors,” Cryptoast reported. Similarly, Gary Gensler, the head of the SEC, admitted on CNBC that he “had no choice but to reconsider the applications for spot bitcoin ETFs, especially after Grayscale won the court against the SEC”, we can read.
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An ETF (or Exchange Traded Funds) is an index fund traded on a stock exchange that tracks the performance of a stock index (or one or more financial assets, such as gold) by replicating the rise and fall of the price of that index (or those assets). To date, the SEC has only approved bitcoin futures ETFs starting in 2021, but not spot bitcoin ETFs. He considers futures contracts more difficult to manipulate because the market is based on futures prices from the Chicago Mercantile Exchange (CME), regulated by the Commodity Futures Trading Commission (CTFC).
To date, 13 industry giants have applied for spot bitcoin ETFs, including asset manager Blackrock in June. The hypothesis of the first spot bitcoin ETF being verified by the US exchange watchdog could well continue to fuel the cryptocurrency queen. Despite this euphoria, investors should remain vigilant: The SEC recently delayed its decision to file Franklin Templeton’s spot bitcoin ETF. Additionally, Bitcoin still remains far from its all-time high of $69,000 in November 2021.