Industry executives said that talks between the U.S. SEC regulator and asset managers wishing to list bitcoin exchange-traded funds (ETFs) have progressed to “key technical details,” indicating the agency may soon approve the products.
The commission has never approved an exchange-traded cryptocurrency spot product to date; instead, it has delayed making decisions on applications for as long as is permitted.
Applications for Exchange-Traded Funds (ETFs) that track the price of bitcoin are pending with the Securities and Exchange Commission (SEC) from thirteen companies, including Grayscale Investments, BlackRock (BLK.N), Invesco, and ARK Investments.
Proponents contend that the best approach for investors to invest in Bitcoin is through a regulated product, such as an ETF, that is linked to the cryptocurrency’s spot price. However, the agency has long disapproved of these goods, claiming they don’t live up to its standards for protecting investors.
“The expected approval of the ETF will be positive news for the crypto market, likely leading to significant growth,” said Mercuryo senior legal counsel Adam Berker.
He added, “With ETFs getting the go-ahead, a wider range of TradFi investors will have simplified access to crypto assets. With major entities such as Fidelity and BlackRock endorsing this product, substantial institutional capital is expected to flow into the market.”
Also Read: Grayscale CEO Feels Optimistic After ETF Discussion with SEC
