Spot Bitcoin ETF Applicants Are Meeting The US SEC Next Week

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Spot Bitcoin ETF Applicants

BlackRock, Fidelity Investments, and other aspirants seeking an opportunity in the Bitcoin exchange-traded fund (ETF) marketplace will meet with the US Securities and Exchange Commission (SEC). All spot Bitcoin ETF applicants have resubmitted their filings with the US Securities and Exchange Commission, specifying their surveillance-sharing collaborators and other relevant facts.

Based on a trusted source, Bloomberg ETF experts Eric Balchunas and James Seyffart tweeted about Bitcoin ETF applications and the US SEC conference next week. Balchunas says they ought to get together and have a conversation about the possibility of a spot Bitcoin ETF as well as rule changes.

Following formal organizing, the US SEC staff typically interacts with ETF registrants to make decisions on their acceptance or rejection and to define their views. However, the meeting to legalize spot Bitcoin is critical for the crypto sector since the SEC, led by Chair Gary Gensler, continues to refuse a spot Bitcoin ETF despite authorizing other same ETFs. 

Following an explosion of Bitcoin ETF submissions last month, the US Securities and Exchange Commission authorized the first leveraged Bitcoin futures ETF, Volatility Holdings 2x Bitcoin Strategies ETF. In the meantime, BlackRock, Fidelity Digital Assets, Invesco, Valkyrie, WisdomTree, and others have resubmitted their spot Bitcoin ETFs following the release of information about their surveillance-sharing arrangements.

Larry Fink, CEO of BlackRock, Said Bitcoin is Praised as “Digital Gold”

On Wednesday, BlackRock CEO Larry Fink, one of the spot Bitcoin ETF applicants, stated that their ETF registration is a “way to liberalize crypto while also rendering it affordable”. He claimed Bitcoin as a global asset and the next gold. BlackRock aims to collaborate with authorities to get its first Bitcoin ETF proposal approved.

Experts believe that the Bitcoin ETF will reduce the cost of trading, which will cost 0.01% on all major cryptocurrency exchanges. When compared to any other cryptocurrency exchange, you can see the possibility here.

What Is Going On In The Crypto Space?

Investors interested in Bitcoin may soon have additional alternatives if US authorities relax their objections to exchange-traded funds linked to private Bitcoin holdings. Prominent financial institutions including BlackRock, Fidelity, and Invesco have applied to become spot Bitcoin ETF applicants in the United States, which would be supported by authentic Bitcoin. 

The US Securities and Exchange Commission has previously dismissed comparable goods, citing concerns about volatility and suspected misuse. Investors interpreted the BlackRock file, especially, as a hint that the SEC was on the verge of abandoning its long-standing resistance to such financial undertakings. In the days after BlackRock’s filing, Bitcoin values reached a one-year high.

What is the Distinction Between Bitcoin Futures and Bitcoin Spot?

The contracts for futures are agreements to acquire or trade an item at an agreed-upon cost at a later date. They are often utilized in numerous markets, such as oil, by investors who seek to trade on price swings without actually owning or possessing the underlying product. 

Bitcoin futures monitor the cryptocurrency’s spot price additionally on exchanges such as the Chicago Mercantile Exchange, while the price of Bitcoin fluctuates depending on actual trade. In the spot Bitcoin market, customers buy and sell real digital cash using exchanges.

What was Previously Accessible?

The ProShares Bitcoin Strategies ETF was the first Bitcoin futures ETF to be accessible in the United States, debuting on October 19, 2021, to high customer demand: On the first day, more than $900 million in stocks were traded. The most expensive Bitcoin ETP, the $1.5 billion Bitcoin Tracker EUR, which is listed on the Stockholm Stock Exchange, engages in replacement agreements to replicate the profit potential of the cryptocurrency. 

Reason for the Bitcoin ETF is that it was launched in Toronto in early 2021, and trades primarily in “physical/digital Bitcoin,” according to its issuer, Purpose Investments Inc. At the same time, some US mutual fund trusts have been tracking Bitcoin in a way akin to ETFs but with specific constraints. 

The Grayscale Bitcoin Trust (GBTC) is legally supported, which means it owns Bitcoin. Grayscale is attempting to transform its stock into an ETF and is fighting the SEC over the change, which the regulator denies. Grayscale anticipates a decision by the end of the year. Currently, more spot Bitcoin ETF applicants are coming forward to make their stand. 

Why Have Regulators Been So Resistant To A Bitcoin ETF For So Long?

Aside from concerns about liquidity and fraud, authorities are concerned that Bitcoin’s volatility may be too strong for regular investors. Bitcoin’s latest three full-year returns have been increases of 305% in 2020, 60% in 2021, and 64% in 2022. The SEC additionally wondered whether funds would have the data they need to properly value tokens such as Bitcoin, particularly if they could authenticate who owned the underlying currencies. 

Closing Thoughts

As these concerns will be discussed in the upcoming week and Bitcoin supporters are expecting a positive reply from the meeting. The acceptance of spot Bitcoin ETF applicants will result in a considerable price hike across all cryptos, especially Bitcoin.

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