The US Securities and Exchange Commission (SEC) is moving closer to approving a series of bitcoin-linked exchange-traded funds (ETFs), marking a potential turning point for the cryptocurrency market.
On Thursday, SEC representatives met with executives from leading financial industry companies including BlackRock, Grayscale Investments, ARK Investments and 21 Shares, signaling a more responsive regulatory approach to digital asset innovations.
The meeting follows years of caution and rejections by the SEC regarding similar proposals, citing concerns about market manipulation in cryptocurrencies.
However, a recent federal appeals court ruling that favored Grayscale in its attempt to convert a trust into an ETF appears to have influenced the SEC’s change of heart.
Details emerging from the discussions show that the SEC has set a December 29 deadline for companies to submit the latest updates to their filings. Meeting this deadline is critical for these issuers to get ahead of potential spot Bitcoin ETF approvals in early January 2024.
The consequences of this change are major. Approval of spot bitcoin ETFs would provide investors with a more direct and regulated way to invest in bitcoin, unlike existing futures-based ETFs.
Furthermore, the entry of major players such as BlackRock and ARK could mean greater legitimacy and stability for the cryptocurrency market.
Changes to the technical details of the proposals, including the allowance for cash redemptions and information on fees and initial amounts to ‘seed’ the new ETFs, were discussed. These changes are intended to meet regulatory requirements and ensure initial market liquidity for these new products.
With the SEC indicating that it may grant approvals in the first business days of 2024, the cryptocurrency market could be about to experience one of the most significant developments yet.
The long-awaited decision not only paves the way for a new type of investment product, but also reflects an evolution in regulatory perception of crypto assets, potentially setting a precedent for future innovations in the sector.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
