The firms will receive a response for their proposals from the SEC between November and December. The VanEck Company recently received the last extension of its application review process until November.
The US Securities and Exchange Commission (SEC) recently again expressed doubt about Bitcoin (BTC) exchange-traded funds (ETFs).
The government agency considers it appropriate to designate a more extended period to take action on regulatory changes. They have notified companies Global X, WisdomTree, Kryptoin, and Valkyrie of that.
The SEC stated that Bitcoin-related companies have been looking to modify financial laws for years to establish ETFs.
Global X will receive an answer on their proposal on November 21st, while Valkyrie will receive the notification on December 8th. Likewise, the SEC will postpone the WisdomTree and Kriptoin applications until December 11th and December 24th, respectively.
Another company that has waited for a response from the SEC is VanEck. They recently received the latest extension of their application review process, whose final response they will receive on November 14th. VanEck made the request at the beginning of the year, but the government agency admitted it in March.
The SEC Considers Bitcoin Futures-Based ETFs to Be Positive
SEC Chairman Gary Gensler has said that they may approve ETFs, specifically under strict mutual fund rules. These focus on Bitcoin futures rather than on the cryptocurrency itself.
In late September, the official expressed that the digital asset management sector is growing and evolving. In addition, he said that the agency he leads is monitoring new business strategies, structures, and practices.
The president of the US Federal Reserve (FED), Jerome Powell, also spoke about Bitcoin. He stated that the country’s government has no plans to ban Bitcoin and other cryptocurrencies.
The advantages that ETFs Offer the Market
Bitcoin-based ETFs are an investment tool that would use the pioneering cryptocurrency as its main asset. Their primary purpose would be to facilitate the investment process in the crypto asset, making it more attractive and accessible to the community.
ETFs have gone public and now represent the collection of different securities, stocks, and bonds under a single share. The trading of shares in various companies is sometimes complex, so ETFs are convenient for long-term stock investing.
Whoever buys an ETF does not acquire individual shares of a market but a benchmark value of a set of them. For that reason, the person or firm would be investing in the most important companies in the United States. Therefore, the value of ETFs will fluctuate based on changes in the prices of the linked shares.
Likewise, when a person acquires an ETF, he buys a benchmark value of the set of shares. When purchasing an S&P 500 ETF, he invests in the leading companies rather than a single asset. Consequently, the value of ETFs will fluctuate according to variations in the prices of the linked shares.
In 1976, ETFs began to be investment tools to copy the behavior of the S&P 500 index. However, the ease and efficiency they offer have allowed them to grow at a great rate in the last 20 years. They enable short-term investors to use exchange-traded funds to enter and exit a position rapidly.
By Willmen Blanco
