The post "SEC Indicating Potential Bitcoin ETF Approval" first appeared on 36crypto.com News.
The SEC is getting closer to making a decision on #Bitcoin ETF that will significantly shape the entire cryptocurrency space, with recent discussions hinting at a possible approval.
According to a recent report by Marketscreener, the United States Securities and Exchange Commission is coming close to approving a Bitcoin exchange-traded fund.
This was revealed after extensive conversations between the SEC and several asset managers, including industry heavyweights such as ARK Investment, Invesco, Grayscale Investments, and BlackRock.
Proponents contend that the ideal approach for investors to invest in Bitcoin is through a regulated product, such as an ETF, that is linked to the cryptocurrency's spot price. However, the Commission has long disapproved of these assets, claiming they don't live up to its standards for protecting investors.
Meanwhile, the discussion between both entities has reached key technical details, a sign that the security watchdog may soon approve the applications. It can be observed that recent court rulings and several advanced discussions relating to custody arrangements and investor risk indicate that the SEC is shifting from its anti-Bitcoin position.
A spot Bitcoin #ETF would be a game-changer for the sector, giving investors who had been previously cautious access to the biggest cryptocurrency in the world through the strictly regulated stock market. Up to $3 billion is anticipated in demand in the initial days.
SEC to decide by January 2024
36crypto previously reported that a decision by the Securities and Exchange Commission to either approve or deny the applications has been set between January 5 and 10 2024.
The Commission has until the aforementioned date to make a decision on ARK Investment's application which is first in line. The nature of the discussions the SEC has been involved in hints that the agency may likely approve ARK's application and also some of the other dozen applications.
Approval expectations driving Bitcoin's price
While the crypto community patiently awaits the SEC's decision, the price of Bitcoin has continued to skyrocket in anticipation. The flagship cryptocurrency recently reached a new yearly high of $44,000.
The market is excited about the possibility of an accessible investment asset like Bitcoin ETF. Eventual approval will mark a significant shift for the crypto industry.
At the time of writing, Bitcoin is trading at $43,150 according to Coinstats data, with a 24-hour trading volume of $36,087,279,660 ($36 billion) and a live market cap of $844,180,351,735 ($844 billion).
