By Alicia Maher
The US’s top financial regulator has requested more time on whether to approve four of the BTC ETFs on its table. The ETFs under consideration included those from Global, Valkyrie, Kryptoin, and WisdomTree. The SEC would decide on them in late November and December this year. An official post issued by the SEC states that “we deem it proper to allot an extended time to consider and take action on the policy changes.”
Last month, two US-based firms (Invesco and Galaxy Digital) submitted a joint proposal for a bitcoin ETF to the SEC. If approved, the ETF offerings might be listed on major exchanges across the country. But the agency has guaranteed that it would protect all the private keys using its latest technology and other hack-proof procedures.
Effect Of An SEC-Approved Bitcoin ETF
Analysts expect an SEC-approved bitcoin ETF to affect the crypto market positively. They opined that the SEC approval would improve investor confidence in the industry which will cause them to increase their investment in the industry.
An iShares data indicates that the total value of ETPs’ is estimated to be about $265m. However, this estimate does not include mutual funds assets. Hence, if the mutual funds are included, the value could increase to about $500B.
Recently, Bloomberg analysts opined that it is likely that the SEC would approve a BTC ETF before this month ends. They even went ahead to suggest that the ProShares’ BTC ETF proposal will be the first to be approved. However, the analysts suggested that the SEC approve all the proposals simultaneously to prevent some ETFs from gaining an unfair advantage over the others.
Gensler Looks Forward To “Staffs Review Of BTC ETF Filings”
While speaking at a financial times event organized recently, SEC chief, Gary Gensler, revealed that he longs to see the review of the several BTC ETF proposals on the agency’s table. However, he further reiterated that investors’ protection remains his top priority.
While industry players were expecting a firmer announcement from the SEC chief, his remarks show that he understands the market’s strong desire for an ETF and its impact on the economy. Even though the SEC is yet to approve any of the ETF proposals, more companies keep submitting their proposals.
In September 2021, bitwise and fidelity investment also added their proposal to the long list of ETF proposals submitted to the SEC. Many crypto enthusiasts agree that greater investor exposure through crypto ETFs will lead to wider adoption of the digital currency industry.
On the other hand, Omramp investment CEO, Tyrone Ross, disagreed that investors will enjoy great gains from indirect exposure to the crypto space through an ETF. He argued that financial advisors and their customers would enjoy the greater benefit of a BTC ETF, and investors seeking the best gains from the market must have direct exposure to it. Ross used stablecoins as an example and argued that these dollar-pegged coins are the fastest for transfers, especially American residents.
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