What’s Happening with Bitcoin ETFs?
In an exciting twist for crypto enthusiasts, multiple firms have recently had their Bitcoin exchange-traded fund (ETF) applications published in the Federal Register, signaling a step forward in the U.S. Securities and Exchange Commission’s (SEC) review process. Among the hopefuls are major players such as BlackRock, Fidelity, Invesco Galaxy, VanEck, and WisdomTree. While there’s a lot of anticipation, the timeline is anything but short!
Understanding the Federal Register Process
When the SEC publishes ETF applications in the Federal Register, it opens the floor for a variety of outcomes. The commission can choose to accept or reject the applications, extend the decision timeframe, or even allow for public comments. Given the volatile nature of crypto, one can only imagine the opinions that may fly around like confetti at a parade.
A Quick Timeline of Events
The frenzy around Bitcoin ETFs began with initial filings last month, and the latest round of applications marks another notch in this rollercoaster ride. Here’s a glance at the timeline:
- Applications Filed: June 2023
- Publication Date: July 19, 2023
- Initial Decisions: 45 days from publication (possibly extending up to March 2024)
As much as we’re eager to pinpoint the launch of Bitcoin ETFs, the SEC has a way of keeping everyone on their toes.
What Comes Next?
After the recent publications, the SEC has a 45-day window to decide on these newly submitted applications. This can feel like waiting for the next season of your favorite show, and just like a good cliffhanger, they might keep us hanging for up to 240 days! This extended period allows the SEC plenty of breathing room to make a credible decision, whether it’s to greenlight the applications or send them packing.
Why All the Fuss?
Despite all the hype surrounding Bitcoin ETFs, the SEC has yet to approve any spot investment vehicles directly linked to cryptocurrencies like Bitcoin. They started allowing ETFs related to Bitcoin futures back in 2021, but a direct product remains elusive. Meanwhile, interesting developments like the launch of a leveraged Bitcoin futures ETF by Volatility Shares Trust are paving the way for an explosive market.
Regulatory Scrutiny
The stakes have never been higher, with the SEC under the magnifying glass from regulators, lawmakers, and the public alike. A recent ruling suggested that XRP is not a security, complicating the SEC’s narrative of regulation through enforcement actions. It seems the crypto cosmos is not only filled with potential profits but also with its fair share of courtroom drama!
So, buckle up! The saga of Bitcoin ETFs continues, and whether we see actual applications morph into approved funds is still up in the air.
