Several Giants Like BlackRock Bitcoin ETF Await SEC’s Greenlight As Delays Are Anticipated
While the wait for Bitcoin ETFs approval by the Securities and Exchange Commission (SEC) is anticipated to face delays, there’s also an air of uncertainty surrounding the topic. The United States SEC will assess Bitwise’s Bitcoin ETP Trust application by September 1.
This news has led other giants in the market, including VanEck, BlackRock, Invesco, and WisdomTree, to linger for their verdicts. Although the enthusiasm for spot-Bitcoin ETF is at its peak, fraud, and manipulation concerns also loom large. Since Gemini’s application was denied previously, the atmosphere is filled with apprehension.
Further, if the Republicans win the electoral contest in 2024, SEC’s crypto stance will tilt towards a supporting crypto community with quick acceptance by SEC for spot-Bitcoin ETF.
An Army Of Contenders Awaiting Their Future
Several Bitcoin giants, including BlackRock Bitcoin ETF, have higher probabilities of acceptance by the SEC. This giant has had an almost perfect record of launching ETFs with no flaws, adding to its initiatives’ credibility. However, the uncertainties and risks in the atmosphere are making the decision rocky.
The overall crypto audience and enthusiasts have high hopes for the spot-Bitcoin ETF to get approved. Its advocates have favored its introduction stating that it could make Bitcoin investments more mainstream by being a conduit.
Fraud and Manipulation Concerns Linger
Despite the favoritism behind spot Bitcoin ETFs, considerations regarding fraud and manipulation are becoming a dark cloud over these dreams. For instance, Gemini’s physically-backed Bitcoin ETF attempt was shot down by the SEC in 2013.
However, the recent enthusiasm stirring in the community has crossed the paths for issuers to venture beyond Bitcoin ETFs into Ether futures or a Bitcoin-and-Ether futures ETFs blend. This stance is still under construction because of SEC’s hesitation, a testament being resistance to Ether futures ETFs.
A Ray Of Hope
The successful launch of Volatility Shares 2x Bitcoin Strategy ETF (BITX) has been gaining attention because it offers a ray of hope for spot Bitcoin ETF enthusiasts. As a first-of-its-kind, the asset has garnered assets worth more than $20 million since its inauguration in June.
Despite the success of this story, SEC’s structured timeline will decide the fate of spot ETF applications, with the final verdict arriving in 240 days. The predictions by market pundits also state a delay coming in September. The CEO of FRNT Financial, Stephane Ouellette, said that the historical trend is of emphasis and administrators can use their power to postpone the decisions:
“Even if these products were ultimately approved, it would be very surprising to see them approved at the first instance they are able to be.”
SEC Gets The Final Word
All the arguments lead to a dreaded question of whether the SEC will nod Yes or No regarding the Bitcoin spot ETF applications. John Reed Stark, a former SEC attorney, shows skepticism and references the Better Markets’ Comment Letters, voicing opinions about Bitcoin markets’ vulnerability to manipulations.
Thus, citing several potential risks, Reed doesn’t think SEC would approve such an ETF. In contrast, Stark says a potential shift may occur post-elections, as Republican triumph could ease SEC’s current position and make Bitcoin spot ETF smoother.
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