3 Stocks to Watch as Approval of Crypto ETF
-Cryptocurrency Performance
As of December 27, Bitcoin BTC has surged by 155.2% year to date, rebounding from a November 2022 collapse linked to issues with FTX, the exchange founded by Sam Bankman-Fried. Ethereum ETH has also seen an 86.1% increase during the same period. The recovery in 2023 is attributed to the anticipation of Securities and Exchange Commission SEC approval for crypto spot ETF filings, potentially bringing cryptocurrency into mainstream finance.
-SEC and Regulatory Developments
Despite initial hesitations due to the perceived unreliability of the crypto sector, the SEC faced pressure as traditional market players entered the crypto arena. A federal judge ruled in favor of Grayscale Investments, highlighting the SEC's wrongful denial of its application. Binance, a major crypto exchange, complied with regulators, fostering confidence in oversight and accountability.
-SEC's Move Towards Mainstream Acceptance
A pivotal moment occurred on November 30 when the SEC sought public opinion on a proposed rule change allowing Fidelity Investments to list and trade shares of the Fidelity Ethereum Fund. This marks a significant step towards mainstream acceptance of cryptocurrencies, paving the way for other traditional finance giants to apply for crypto ETFs.
-Investor Optimism and Future Expectations
Investor optimism is soaring as there is a growing belief that the SEC may expedite the approval of crypto ETF applications, potentially starting as early as January 2024. Market participants are closely monitoring major players entering the crypto space, especially those seeking approval for spot crypto ETFs.
-Traditional Finance Giants Exploring Crypto
Several traditional finance giants are actively exploring the crypto space and applying for spot crypto ETFs. BlackRock, Inc. BLK, Invesco Ltd. IVZ and WisdomTree, Inc. WT are notable examples. Each company's background, current earnings growth, and Zacks Rank are outlined, providing insight into their potential impact on the evolving crypto landscape