The Securities and Exchange Commission has been in the crypto community’s minds for the past few years, mainly due to the attacks it launched against numerous companies and projects.
Now, though, the agency is expected to finally greenlight a spot Bitcoin ETF in the US after a decade of rejecting all proposals.
ETF Next Week?
The start of the new year began a lot of hope for crypto investors and all the companies that have filed with the SEC to launch a spot BTC ETF in the States. It also resulted in a rally on the second day of 2024, followed by a massive rejection driven by reports that the Commission has no intentions of allowing such a product to reach the markets anytime soon.
While many experts have refuted these speculations, BTC’s price slumped by nearly five grand in hours. Nevertheless, it recovered most losses as the community prepares for the potential approval that could come as early as next week, according to a few ETF experts, such as Bloomberg’s Eric Balchunas.
The popular AI resource Perplexity has a similar answer to the question of when the SEC will finally greenlight a spot ETF tracking the performance of the largest cryptocurrency.
“The U.S. Securities and Exchange Commission (SEC) is expected to approve a spot Bitcoin exchange-traded fund (ETF) by the January 10 deadline.
While the SEC has not made a public statement indicating its decision, the ongoing discussions and meetings between the SEC and key players suggest a favorable decision is expected.”
Inflows and Benefits
The crypto industry is generally divided on whether a spot Bitcoin ETF will be a positive development. On one corner stand people like Jimmy Song, who believes such a product won’t matter, and Edward Snowden, who asserted that it will “tame” the core idea of Bitcoin. The other side of the coin sees the potential approval as the necessary validation BTC needs to be regarded as a legitimate financial tool among institutions.
Despite the conflict in terms of the ETF’s impact on the cryptocurrency, all experts are united in believing that the inflows toward the asset and the entire industry will skyrocket in the following years.
“The SEC’s potential approval of the spot Bitcoin ETF is anticipated to provide investors with access to the world’s largest cryptocurrency and could lead to significant institutional investment in the crypto industry.” – answered Perplexity to this question.