Reuters reports that a US Bitcoin ETF could soon be approved. As per the recently released report, discussions between the U.S. Securities and Exchange Commission (SEC) and asset managers are ongoing. This shows that there are some technical details that have to be defined and that show that a spot Bitcoin exchange-traded fund could be approved shortly.
SEC Finalizing Details for Bitcoin ETF Approval
The U.S. Securities and Exchange Commission might be ultimate details with asset managers to list Bitcoin-based ETFs in the United States. Right now, several companies such as Grayscale Investments, BlackRock and ARK Investments have presented applications to the SEC to list Bitcoin ETFs.
Bitcoin ETFs are key for the growth of the cryptocurrency community as they allow large investors and institutions to get access and exposure to Bitcoin. Furthermore, this would also allow the market to be considered more secure and mature. In the past, the SEC rejected multiple Bitcoin ETF proposals that were deemed not ready to protect investors from fluctuations and security issues.
In a conversation with Yahoo Finance, Bryan Armour, ETF analyst at Morningstar, said that there will be multiple Bitcoin ETFs approved at once. About it, Mr. Armour said:
“My guess is that we’ll have several ETFs approved at once which will give investors the best opportunity to compare them.”
Over the last few days, Bitcoin price grew by over 16% and surpassed $44,000 for a short period of time, according to CoinGecko. At the time of writing, Bitcoin is the largest cryptocurrency in the market and it has a price per coin of $43,700. Additionally, BTC has a market capitalization that broke the $850 billion barrier a few days ago.
With the approval of a Bitcoin ETF, it might be possible for Bitcoin to continue moving higher as new funds enter the market. In addition, Bitcoin will also experience a new halving event that will reduce the new issuance of Bitcoin from 6.25 BTC per block to 3.125 BTC. This could also have an impact on the price of the largest cryptocurrency in the world.