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SEC accepts Bitcoin ETF applications

2 min read

The US Securities and Exchange Commission has accepted BlackRock’s application for a bitcoin spot ETF. The assumption means the start of the official test procedure. This means that the Bitcoin Spot ETF application from the world’s largest asset manager has not yet been approved. However, BlackRock cleared the first regulatory hurdle in a lengthy process with the SEC.

The financial giant is not alone. The SEC is also reviewing filings from various funds, including WisdomTree, VanEck, and Invesco. A race for approval has erupted among the world’s largest wealth managers. Everyone wants to be the first to bring the investment product to market. An advantage for the crypto industry: Due to the large number of applications, the chances of success increase. The different ETF filings are forcing the SEC to conduct a thorough review, especially as the authority has come under even greater criticism since losing the Ripple litigation.

Bitcoin ETF: catalyst for bull market

Since BlackRock and Co. submitted the applications, there has been euphoria on the crypto market. Finally, approval of a bitcoin spot ETF would have a major impact on bitcoin price action.

An example calculation: The five largest wealth managers in the world manage around 25 trillion US dollars. If just 1 percent of that were continually shifted into Bitcoin or invested by new funds, that would equate to a cash inflow of around 250 billion USD. With a current BTC market capitalization of almost 600 billion US dollars, this is a noteworthy effect.

The Bitcoin course had climbed over 30,000 USD shortly after the announcement of the ETF applications. At the time of writing, the oldest cryptocurrency is trading at 30,245 USD and has barely bounced for the past few weeks. After Ripple’s victory last week, the prices of many altcoins exploded, but not Bitcoin. Therefore, the Bitcoin dominance has fallen again, but remains with around 50.07 percent on a high level.

It remains to be seen how the SEC will evaluate the applications. So far, the US Securities and Exchange Commission has rejected all Bitcoin spot ETF applications. Such financial products already exist in other economic zones, including Canada, Australia and most recently Europe. However, the USA continues to be decisive for the crypto market.

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.
BlackRock (IBIT), the Grayscale Bitcoin Trust (GBTC), Fidelity (FBTC), Ark Invest/21Shares (ARKB), Bitwise (BITB), Franklin (EZBC), Invesco/Galaxy (BTCO), VanEck (HODL), Valkyrie (BRRR), WisdomTree (BTCW), Hashdex (DEFI)