The United States Securities and Exchange Commission (SEC) has taken a major step toward potentially approving the first-ever Spot Bitcoin (BTC) Exchange-Traded Fund (Bitcoin ETF) in the country. The regulatory process for the approval of spot Bitcoin ETFs officially began as eight applicants were listed in the Federal Register, signaling the start of the SEC’s review process.
The applicants include traditional finance industry giants like BlackRock and Fidelity, alongside BitWise, WidsomTree, VanEck, Invesco, Proshares, and Valkyrie. All these companies aim to offer the first approved Spot Bitcoin ETF in the US, which would be a significant departure from the SEC’s previous rejections of such applications.
SEC’s Approval of Bitcoin ETF Clock Starts Ticking
It should be noted that the SEC’s approval calendar commences as soon as the filings are published in the Federal Register, a daily publication of the US government containing various official documents. This marks an essential milestone in the application process, as it officially recognizes and acknowledges the submission of these companies’ proposals to the SEC.
While being listed on the Federal Register is a positive step, it does not guarantee approval for the applications. The SEC will conduct a thorough review, taking into account factors like investor protection and market manipulation concerns. The decision on whether to approve or reject the applications will be entirely at the Gary Gensler-led SEC’s discretion.
However, the involvement of established financial entities like BlackRock and Fidelity has led to speculation that the SEC might lean towards approving the creation of a Spot Bitcoin ETF this time.
At this point, it’s crucial to note that the review process can be lengthy and complex, and no definite outcome can be predicted at this stage, given the fact that the regulatory agency has repeatedly rejected similar applications in the past.
As the SEC begins its review process, which could take as many as 240 days, all eyes are on the regulator to see whether it will embrace this new era of cryptocurrency investment or uphold its historical stance. Only time will reveal the final decision that could shape the future of Bitcoin ETFs in the US.
