The long-awaited approval of the Bitcoin ETF by the US Securities and Exchange Commission (SEC) may take place as early as October this year, Bloomberg analysts Eric Balchunas and James Seyffart note.
The day before, they issued an appeal to investors, where they said that the application for the creation of a Bitcoin ETF from VanEck and ProShares will receive approval from the regulator in a few weeks . However, this scenario causes a lot of skepticism, since the current head of the SEC, Gary Gensler, is still very cautious about the cryptocurrency industry.
Recall that an ETF is an exchange-traded fund whose shares are traded on an exchange. Accordingly, it allows stock exchange participants to make money on the movements of the cryptocurrency rate, without owning it. Thus, traders get rid of the need to keep digital assets on their own, but are able to connect to the massive hype around the crypt.
This mechanism resembles the interaction of American investors with Grayscale, which also trades in shares. In the case of it, citizens invest in Bitcoin or the Ethereum Fund and thus receive, as it were, a certificate of ownership of a certain amount of coins. This scheme is very popular in the United States, where problems regularly arise with the operation of conventional cryptocurrency exchanges.
In particular, American politicians also reported on their investments in digital assets using Grayscale. Senator Cynthia Lummis was the first to do so, and Pennsylvania Senator Pat Toomey came second. He invested in BTC and ETH. Here is the corresponding investment report.
Bitcoin ETFs can be a profitable tool for large investors to invest in cryptocurrency, while the very fact of its existence will strengthen the belief in BTC as a reliable asset. By the way, they are still trying to worsen the reputation of the first cryptocurrency. The last to do this was the government of Yingjiang County, Yunnan Province in China. The day before, they informed local Bitcoin miners about the cessation of electricity supply.
When will Bitcoin ETFs be approved?
As a reminder, the adoption of the Bitcoin ETF in the United States has been an anticipated event for the entire industry for several years in a row. Prior to that, the regulator responded to all orders with a refusal, which often led to serious market falls.
Here is a quote from analysts on this matter, in which they share their vision of what is happening. The replica is provided by Cointelegraph .
The quick withdrawal of VanEck and ProShares ETF applications for Ethereum is a good sign for the potential adoption of Bitcoin ETFs, given that the SEC has allowed the applications to remain active. The launch of the Bitcoin ETF may take place as early as October, and we believe the SEC should authorize multiple ETFs at once to avoid giving a trailblazer an edge in this area.
Note that there have been enough attempts to launch cryptocurrency ETFs in the US. The first of these was undertaken by the Winklevoss brothers, who applied for BTC-ETF approval in 2013.
At the same time, in some countries, such tools are already working. For example, in February 2021, the Canadian regulator for the first time approved the launch of exchange-traded investment funds on Bitcoin.
The very fact of the adoption of an exchange-traded fund as the main cryptocurrency should serve as a great prerequisite for the rapid rise in the price of Bitcoin. According to Decrypt , only in America a significant part of the population is already interested in the potential of BTC.
According to a recent CNBC poll, one in ten Americans invests in crypto. The survey covered a sample of 5,530 respondents, 60 percent of whom believe in Bitcoin’s long-term potential. In other words, a sufficient part of the population has a close relationship with the crypt, in such conditions the SEC cannot ignore the popularity of the main digital asset.
We believe that sooner or later, the approval of ETFs in the United States will still take place, thanks to which stock exchange participants will be able to join the interaction with cryptoassets. Nevertheless, now the hype around the world of blockchain is very strong: the beer producer Budweiser bought the ENS-domain beer.eth for 30 ethers, that is, the equivalent of $ 95,000, while the official Twitter account of Visa News put on the avatar the purchased NFT from the Cryptopank series … So approving a Bitcoin ETF could be the next logical step in regulating the industry.