Bitcoin ETFs: SEC Accepts Over 6 Proposals Into Its Fold
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The US Securities and Exchange Commission (SEC) has accepted over six proposals for spot Bitcoin exchange-traded funds (ETFs) for review, signaling a potential breakthrough for the long-awaited crypto investment product.
What Is a Spot Bitcoin ETF?
A spot Bitcoin ETF is a type of fund that tracks the actual price of Bitcoin and can be bought on a standard securities exchange. A spot Bitcoin ETF would offer investors direct access to Bitcoin without owning it, exposing them to its potential and pitfalls. A spot Bitcoin ETF would also represent a major step in Bitcoin becoming a mainstream asset class with respectability.
The SEC has not approved any spot Bitcoin ETFs in the US, citing concerns about fraud and manipulation in the Bitcoin markets. However, the regulator has recently approved several Bitcoin futures ETFs, which are funds that invest in contracts that bet on the future price of Bitcoin.
JUST IN: 🇺🇸 SEC adds BlackRock, Fidelity & 6 other Spot #Bitcoin ETF applicants to the Federal Register.
— Watcher.Guru (@WatcherGuru) July 19, 2023
The Approved Bitcoin ETFs Accepted by the SEC
The spot Bitcoin ETF proposals that have been accepted for review include the ones from BlackRock, Fidelity, WisdomTree, VanEck, Invesco, and Valkyrie. These proposals have been filed under the Investment Company Act of 1940, which is a more stringent regulatory framework than the Securities Act of 1933, which governs most ETFs.
The acceptance of these proposals does not guarantee that they will be approved, but it indicates that the SEC is willing to consider them. The SEC has 45 days to either approve, reject, or extend the review period for each proposal. If extended, the review period can last up to 240 days.
The approval of a spot Bitcoin ETF would have a global impact on the crypto market, as it would attract more institutional and retail investors to the digital currency. It would also increase the liquidity and transparency of the Bitcoin market, as well as reduce the premiums and fees associated with other crypto investment vehicles.
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