The SEC has been on the minds of the cryptocurrency community over the past few years, mainly due to the attacks it has launched against various companies and projects.
Now, though, the agency is expected to finally give the green light to a Bitcoin ETF in the US after a decade of rejecting all proposals.
ETF next week?
The beginning of the new year has started with a lot of hope for cryptocurrency investors and all the companies that have applied to the SEC to launch a spot BTC ETF in the US. It also led to a rally on the second day of 2024, followed by massive pushback driven by reports that the Commission had no intention of allowing such a product to reach the markets any time soon.
While many experts refuted this speculation, the price of Bitcoin fell by nearly five thousand dollars in hours. However, it has recovered most of its losses as the community braces for potential approval that could come as early as next week, according to a few ETF experts, such as Bloomberg's Eric Balchunas.
Popular AI resource Perplexity has a similar answer to the question of when the SEC will finally give the green light to an ETF that tracks the performance of the largest cryptocurrency.
“The US Securities and Exchange Commission (SEC) is expected to approve a Bitcoin spot exchange traded fund (ETF) by the January 10 deadline.
While the SEC has not issued a public statement indicating its decision, ongoing discussions and meetings between the SEC and key players indicate that a positive decision is expected.
Flows and benefits
The cryptocurrency industry in general is divided on whether a Bitcoin exchange-traded fund would be a positive development. In one corner stand people like Jimmy Song, who believes such a product would be irrelevant, and Edward Snowden, who asserted that it would “tame” the basic idea of Bitcoin. The other side of the coin sees potential approval as the necessary validation that BTC should be considered a legitimate financial instrument among institutions.
Despite the conflict over the impact of the ETF on cryptocurrency, all experts are united in the belief that flows towards the asset and the entire industry will rise significantly in the following years.
“The potential SEC approval of a Bitcoin exchange-traded fund is expected to provide investors with access to the world's largest cryptocurrency and could lead to significant institutional investment in the cryptocurrency industry.” – Bewilderment answered this question.
