YEREVAN (CoinChapter.com) — The US Securities and Exchange Commission (SEC) has outlined three major concerns regarding spot Bitcoin Exchange-Traded Funds (ETFs), prompting a proactive response from issuers. These concerns include the redemption model, disclosure of authorized participants, and managing hard forks and airdrops.
The SEC has several issues with the possibility of a spot Bitcoin ETF. Here are the main three.
These measures signify the issuers’ commitment to align with SEC guidelines and demonstrate a collaborative approach to addressing regulatory hurdles. As the approval process for Bitcoin ETFs progresses, these actions could play a pivotal role in shaping the landscape of cryptocurrency investment products.
Currently, there are several key players in the Bitcoin ETF race, including financial giant BlackRock. Other applicants include Valkyrie Investments, ARK Invest, the largest crypto investment vehicle, Grayscale, Fidelity, etc.
Notably, SEC Chair Gary Gensler commented earlier that his decision would not change, as he considered crypto investments, including Bitcoin(BTC), to be risky. Then, in late September, the Commission claimed it needed more time to consider the rule change, using the last available delay.
The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change, as modified by Amendment No. 3, and the issues raised therein. Accordingly, the Commission… designates January 10, 2024, as the date by which the Commission shall either approve or disapprove the proposed rule change,” the SEC announced.
However, players like BlackRock can be persuasive. The financial giant has famously gotten 575 ETFs approved against a single rejection. So, the SEC might choose to contend with the applicant and its trillions. The agency is currently in negotiations with BlackRock, as CoinChapter reported previously.
While BlackRock’s potential impact on the cryptocurrency market is questionable, the spot Bitcoin ETF approval could push BTC price well over $50,000 in 2024.
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