Top 100 Crypto
SEC Nears Milestone Approval of Initial Spot Bitcoin ETF

SEC Nears Milestone Approval of Initial Spot Bitcoin ETF

Dec 21, 2023
Read in 3 mins

The regulatory body may approve first spot Bitcoin ETF by January 10 deadline in a groundbreaking development in crypto history.

The U.S. Securities and Exchange Commission (SEC) is on the verge of making a landmark decision in the realm of cryptocurrency. The regulatory body is expected to give its nod to the first-ever spot Bitcoin Exchange-Traded Fund (ETF) in early January. If the approval comes through as expected, it will mark a significant step towards the mainstream acceptance of cryptocurrency in the United States.

Company insiders have hinted at the likelihood of the SEC’s approval by January 10, 2024. This date is crucial as it is the final day for the SEC to decide whether to approve or reject the application of the first company seeking to launch a spot Bitcoin ETF, as per a report by Fox Business on December 20. Numerous entities, including Wall Street giants like BlackRock and Fidelity, have filed applications for a spot BTC ETF.

This move represents a notable change in stance for SEC Chairman Gary Gensler, who had previously shown reluctance towards such initiatives. His hesitation was curbed following a recent ruling by the U.S. Court of Appeals for the D.C. Circuit, which limited his regulatory power over cryptocurrency.

A spot Bitcoin ETF offers retail investors a more affordable way to access the world’s largest cryptocurrency compared to the already approved Bitcoin ETF, which is priced based on the futures market.

Moreover, investors can gain exposure to Bitcoin without having to use unregulated exchanges. They can purchase an ETF through strictly regulated asset management firms, with trading taking place on trusted platforms like the New York Stock Exchange and Nasdaq stock market.

The world’s largest asset manager with $9 trillion in assets under management, BlackRock, has made obtaining SEC approval for its proposed Bitcoin ETF a top priority, as reported by FOX Business. Larry Fink, the founder and CEO of BlackRock, has described Bitcoin as a “global asset” and a “store of value,” challenging gold’s long-held status.

As a provider of over 400 traditional ETFs, BlackRock has held five meetings with the SEC regarding its spot Bitcoin ETF application, with the most recent meeting occurring on December 19. The SEC has held around 24 meetings with various ETF applicants, demonstrating the agency’s concerted effort to fast-track the approval process and introduce these ETFs to the market in the coming year.

cool.svg cool_white.svg COOL!
notbad.svg notbad_white.svg NOT BAD!
notcool.svg notcool_white.svg NOT COOL!