In the near future, the US Securities and Exchange Commission could potentially approve ETFs holding bitcoin directly, a step that would further legitimize the blockchain asset class. This marks a significant milestone after years of effort by fund issuers to gain approval.
The Winklevoss twins made the first attempt back in July 2013 with the launch of the Winklevoss Bitcoin Trust. Despite initial optimism, the SEC denied the proposal in 2017, citing concerns over the lack of regulation in the bitcoin market.
Following this rejection, other companies such as Grayscale Investments and Bitwise submitted their own bitcoin ETF applications, only to face similar challenges from the SEC. In fact, the rejection of spot bitcoin ETF applications persisted until the recent approval of ETFs investing in bitcoin futures contracts in October 2021.
Despite these setbacks, fund issuers have continued to pursue their bitcoin ETF applications, with notable financial giants like BlackRock and Fidelity joining the race. The involvement of such traditional finance giants has added political impetus on the SEC to consider approving spot bitcoin ETFs.
In a significant development, Grayscale won a court battle against the SEC in August, setting a potentially precedent for future bitcoin ETF approvals. This victory, along with increased transparency and detail provided in recent ETF filings, signals a potential shift in the regulatory landscape.
The latest wave of bitcoin ETF applications has also brought about a surge in related marketing efforts, indicating the anticipation and competition that may arise if and when spot bitcoin ETFs are finally approved.
Overall, the evolving landscape of bitcoin ETF approval reflects the growing interest and potential of the cryptocurrency industry within the traditional financial domain. As such, it is essential for industry professionals and investors to stay informed about these developments and their implications for the wider crypto and NFT field.
