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2021
The U.S. Securities and Exchange Commission (SEC) has opened up a brief approval window for applicants wishing to launch a spot Bitcoin ETF. A majority of analysts estimate a 90% chance that the SEC will be approving a spot ETF by January 2021. This opportunity comes after the agency changed its approach to reviewing ETF applications and the cryptocurrency space in general. Additionally, several factors could help an investment vehicle get approved including a higher institutional approach to investing.
This news comes after a string of ETF rejections that have left the crypto community frustrated. However, VanEck, one of the companies hoping for an approval for a Bitcoin ETF, has recently filed to offer shares of an ETF to institutions following comments from Commissioner Hester Peirce. Other ETF applications such as from Bitwise and NYDIG are pending but likely subject to this approval window.
The potential of a spot Bitcoin ETF becoming approved has been met with excitement from both institutional investors as well as retail investors. This could open up the door to more institutional money entering into the crypto space and could potentially affect Bitcoin’s price. It is possible that with a spot ETF, investors would gain easier access to cryptocurrencies, regardless of market volatility. As the window closes in the coming months, it will be important to pay close attention to any developments in the SEC’s assessment of ETF applications.