Another important decision is coming from the SEC today. Accordingly, the decision regarding the Bitcoin ETF applications of 2 companies was postponed again. The SEC postponed BlackRock’s Spot Bitcoin ETF application yesterday. Let’s look at the details.
SEC resists Spot Bitcoin ETF point
As I mentioned on cryptokoin.com in the morning, the SEC continues its resistance on the Bitcoin ETF point. Accordingly, after the postponement in the morning, WisdomTree and VanEck’s spot Bitcoin ETF application was postponed today.
According to the SEC, there are some reasons for the applications made. But even if these concerns have been addressed, the SEC still chooses to delay. Frankly, the repercussions of such a decision on the cryptocurrency market also attract attention.
Why is Bitcoin ETF important?
First of all, there will be access for traditional investors. Accordingly, a Bitcoin ETF would provide a direct path for traditional investors to invest in BTC. Many institutional investors, such as pension funds and mutual funds, have restrictions that prevent them from directly purchasing and holding cryptocurrencies. An ETF would allow these investors to indirectly invest in Bitcoin through a familiar and regulated investment vehicle.
With Bitcoin ETF, it will be possible to invest directly in cryptocurrencies. But there are storage concerns here. There are issues that address these concerns. Accordingly, concerns will disappear as the fund deals with custody and security on behalf of investors.
Legalization and regulatory approval
An important consideration here is regulatory approval. So legality. Accordingly, it is important for a Bitcoin ETF to be approved by regulatory authorities such as the US Securities and Exchange Commission (SEC). It will be a sign that cryptocurrencies are increasingly accepted in the mainstream financial system. It will provide a level of regulatory oversight and investor protection that will increase the reliability of the cryptocurrency market.
ETFs, on the other hand, are traded on traditional exchanges, which tend to have higher liquidity compared to cryptocurrency exchanges. A Bitcoin ETF will likely attract significant trading volume. This will potentially lead to better price discovery. It will also lead to a decrease in price volatility in the BTC market. Finally, the obstacle to the acceptance of cryptocurrencies will be removed. A BTC ETF will make cryptocurrencies more accessible to a wider audience of investors. This will thus encourage wider adoption. More people will turn to Bitcoin through an ETF. This will increase interest, awareness and participation in the cryptocurrency market.
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