The SEC has been cautious in granting approvals, citing concerns about market manipulation and investor protection.
The rivalry to introduce the first Bitcoin ETF in the US has intensified. BlackRock and Bitwise, two big players in the market, have each proposed their own ETFs, and the US Securities and Exchange Commission is quite interested in these plans.
Both companies are competing for the chance to be first to market with a revolutionary investment product that would broaden the pool of people who can afford to invest in Bitcoin. BlackRock’s application for the iShares Bitcoin Trust has been officially registered by the SEC, marking a significant step in the regulatory review process.
Bitwise, on the other hand, also received recognition for its Bitcoin ETF application, adding to the growing list of contenders seeking SEC approval.
Along with BlackRock and Bitwise, other prominent firms like Invesco, Wisdom Tree, Fidelity, Valkyrie and ARK Invest have entered the race, each incorporating surveillance sharing provision into their apps.
Decrypt tweeted that “SEC Formally Accepts BlackRock Spot Bitcoin ETF Application,” on July 15.
Bitcoin ETF in Simple Terms
A Spot Bitcoin ETF is a type of investment fund that allows individuals or organizations to buy the popular digital currency Bitcoin (BTC). Exchange-traded funds, or ETFs, are financial products that track the price of an object or group of assets.
The word “spot” refers to the fact that the ETF trades Bitcoin directly rather than Bitcoin futures or other derivatives. This means that the fund owns Bitcoin itself, not a contract or other token of its value.
By buying shares of a spot Bitcoin ETF, individuals can expose themselves to changes in the price of Bitcoin without having to buy and hold Bitcoin themselves. The ETF provider handles the purchase, storage, and security of Bitcoin on behalf of clients. Once approved, this type of ETF would be tradable on traditional stock exchanges, offering a bridge between the world of cryptocurrencies and traditional financial markets.
Bitcoin ETF: Getting the Nod from the SEC
The cryptocurrency landscape has recently undergone considerable development as a result of the acceptance of these applications by the SEC. A spot Bitcoin ETF has long been considered the “holy grail” in the industry due to its potential to attract a broader investor base and increase accessibility to digital assets.
However, the SEC has been cautious in granting approvals, citing concerns about market manipulation and investor protection. With multiple spot Bitcoin ETF applications under review, the SEC has an opportunity to evaluate various strategies and address the potential risks associated with such financial products.
While the SEC has yet to approve a spot Bitcoin ETF in the United States, Canada has taken a more progressive stance, with three major funds including Purpose Bitcoin, 3iQ CoinShares and CI Galaxy Bitcoin already receiving regulatory approval.
Public Comment Period Opens
Meanwhile, the SEC’s official filing of the BlackRock and Bitwise apps, along with several other contenders, will now trigger a 21-day public comment period, during which investors, industry experts, and other stakeholders can provide their contributions and comments.
With regulatory scrutiny as the top priority, the SEC will carefully evaluate each proposal to ensure it aligns with investor protection standards and market integrity. KITCO featured image
By Audy Castaneda
