The United States may witness the launch of a spot Bitcoin exchange-traded fund (ETF) right before Labor Day, according to Bloomberg Intelligence. The US Securities and Exchange Commission (SEC) is expected to respond to several applications from major players in the industry. However, the SEC’s previous stance on ETFs has been discouraging. With uncertainty looming, experts are divided on whether the highly-anticipated Bitcoin ETF will finally see the light of day in the world’s biggest economy.
The SEC has the authority to approve, reject, or delay the filings of BlackRock, Bitwise, WisdomTree, VanEck, and Invesco. Bitwise’s application will be the first to be considered, with an announcement expected on September 1. The decisions on the other four filings are due on September 2. However, Roxanna Islam, an associate director of research, expresses pessimism, suggesting that the SEC may choose to delay the process. This skepticism is further fueled by the SEC’s previous rejection of Grayscale’s Bitcoin ETF ambitions and the recent delay in deciding on the joint effort of ARK Investment Management and 21Shares’ spot BTC ETF.
In recent years, obtaining approval for a Bitcoin ETF from the SEC seemed nearly impossible. However, the involvement of finance giant BlackRock has changed the dynamics. The company has had an impressive track record with the SEC, with only one rejection among its 576 ETFs. This has injected optimism into the crypto space, leading many to believe that a spot BTC ETF could be approved. Other factors working in BlackRock’s favor include the high level of trust placed in the company by the US government and the Federal Reserve during the 2008 Financial crisis. Additionally, BlackRock’s CEO, Larry Fink, who once criticized Bitcoin, has shown a change of heart and aligned his stance with supporters of the asset. Moreover, BlackRock has previous experience in the field, having launched a BTC private ETF for institutional investors.
The existence of spot BTC ETFs in other regions, such as Canada and Europe, is another factor influencing the SEC’s decision. The growing number of ETF applications from major asset managers like Vanguard and Fidelity also adds weight to the argument for approval. Considering the success and positive market response to Bitcoin ETFs in other parts of the world, it becomes increasingly difficult for the SEC to ignore the demand for such products in the US.
The eagerly-awaited launch of a Bitcoin ETF in the US hangs in the balance as the SEC prepares to respond to applications from major players in the industry. While the involvement of BlackRock and other influential asset managers may improve the odds of approval, the SEC’s previous rejections and delays indicate a degree of caution. The decision on these potentially groundbreaking ETFs will have a significant impact on the future of Bitcoin and the broader cryptocurrency market. As industry experts and investors eagerly await the SEC’s response, the debate on whether a Bitcoin ETF will become a reality in the United States continues to divide opinions.