By Lucas Williams
It is expected that physical spot Bitcoin ETF arrive on the market sooner than expectation. Grayscale has decided to file early coming. This announcement has increased the chances that the first ever spot Bitcoin ETF might hit the market by the end of this year. The reports came after Grayscale publicly said that they are about to file for the SEC approval regarding its product approval by “early next week.”
The United States Security and Exchange commission will take up to 75 days for the assessment process. After those 75 days, it would SEC’s decision, they could either accept or decline the Grayscale’s application for filling permission. The proposed Bitcoin ETF is first of its kind, it is physically- settled, bitcoin’s first ever real-world financial product which could be used for the spot trading as well.
Companies like ProShares and Valkyrie, have already approved Bitcoin futures ETF spot token. It has been said that this was the first major breakthrough and it has opened the doors for many physically settled Bitcoin ETF coming to the market pretty soon. However, SEC’s approval remains the biggest challenge.
Barry Silbert, the founder, and CEO of digital currency group has claimed that he has received the Grayscale’s application for a spot ETF for the SEC to allow Grayscale competitors to enter the market. The fact of the matter is that the approval of Bitcoin ETF will make the financial landscape more transparent and competitive as compared to the past. Moreover, it will also attract multiple investors to invest in the ETF spot trading. This will bring in those financial institutions to the market which were previously facing limitations while entering the market.
A spot ETF estimates the current Bitcoin price closer than a futures ETF. The spot price is the current price in terms of USD which is needed for the immediate bitcoin purchase and delivery. If the Grayscale’s ETF bitcoin is approved by the SEC, it would arrive in the market in such interesting time where the price of Bitcoin is further on the up. Bitcoin which has now reached $64k mark is expected to reach all time high. On the other hand, where China has banned Bitcoin, US has shown its support to the Bitcoin mining and trading.
It seems that world’s biggest crypto private and institutional investors have now decided to invest in the U.S amid country’s bitcoin approval and crypto friendly policies. At times where crypto is touching new heights the approval of Grayscale’s ETF spot Bitcoin can be the game changer for not just company, bit for the market itself.