The SEC has up to 240 days, or until March 2024, after the ETF applications are published in the official journal of the United States government, to decide whether to approve or deny them.
Applications for spot Bitcoin exchange-traded funds (ETFs) from significant companies have arrived on the desks of the US Securities and Exchange Commission (SEC), in a much-anticipated development. By having their applications appear in the Federal Register, BlackRock, Fidelity, Invesco Galaxy, VanEck, and WisdomTree have all made significant strides toward receiving regulatory approval.
With the completion of this significant step, the SEC now has the option to accept or reject the petitions, extend the deadline for consideration, or solicit feedback from the general public. These financial behemoths have prepared the ground for a potentially game-changing breakthrough in the field of cryptocurrency investments by submitting the applications in the official journal of the U.S. government.
SEC Faces Crucial Decision and Timeline
The SEC has a 45-day window starting in early August to decide whether to grant these applications, so time is running out. The commission may, however, choose to extend this procedure for a further 240 days, giving it until March 2024 to approve or reject the proposal in its entirety. As the SEC has never before approved a spot investment vehicle with direct exposure to cryptocurrencies like BTC, this crucial decision will have profound effects on the cryptocurrency industry.
Despite the SEC’s prior approval of ETFs tied to BTC futures, this recent wave of spot Bitcoin ETF filings marks a brave move in the direction of increasing the legitimacy and accessibility of cryptocurrency investments for traditional investors.
However, there has been some debate over how the SEC has handled the bitcoin market. Recent regulatory, legislative, and public attention has increased, in part because of a federal court decision that suggested the XRP coin was not a security. Additionally, the commission’s approach to regulation, which is sometimes described as “regulation by enforcement action,” has sparked debate and worries among the sector.
The SEC must make crucial decisions that might alter the trajectory of cryptocurrency investments in the US as the battle for regulatory approval intensifies. The potential for these apps to open up a new age of accessibility, expansion, and widespread acceptability for Bitcoin and the larger crypto market has the financial world waiting with bated breath.
Stay tuned for what promises to be an enthralling chapter in the crypto story of 2023.