VanEck and Bitwise are expected to start launching their Bitcoin ETFs this month after the United States Securities and Exchange Commission (SEC) cleared them to go ahead with planned Bitcoin-based exchange-traded funds (ETFs) launch. The SEC was forced to convey an emergency meeting during the weekend after which it made the announcement on March 31st at midnight.
The SEC had postponed the decision to clear Bitwise to launch Bitcoin ETFs three times in a row and investors had almost given up with the case with nobody anticipating that the exchange would obtain clearance this early.
VanEck had submitted its application in Mid-February while Bitwise had made its application in January. Both had hoped that it would only have taken 45 days to get an approval or disapproval, though the SEC is also permitted to extend the timelines by to 90 days if conditions insist. And as per the last postponement by SEC on March 29th, the 90-day extension seemed very probable.
VanEck to launch Bitwise’ ETFs any time this month!
With the clearance, VanEck, which is Bitwise’s Investment and Asset management firm, is expected to launch the Exchange Traded Funds on Bitwise any time from now.
Markets Skyrocket immediately after SEC’s announcement
The decision comes as a shocker to the crypto markets, especially since it comes right on the heels of Bitwise’s CoinMarketCap accusations about exaggerated crypto exchange volumes. And a result, Crypto coins like Bitcoin have seen a sharp hike in market prices and the trend is expected to carry on throughout the month with more action being expected after the exact launch of the ETFs.
For many, the launch of ETFs could hold the key to the bear crypto markets that have prevailed for over a year. ETFs could hold the key to bringing back the value of cryptocurrencies.
However, some have criticized the announcement terming it as an unorthodox, especially after the Chairman had to convey an emergency meeting more so during a weekend.
“I believe Clayton was attempting to counteract the narrative that the American government is unable to act without shutdowns and other shades of political chaos,” said Violet Baudelaire, professor of Economics and Public Policy at MIT, in an email to Finance Magnates. “However, this kind of rash action could send the message that the SEC is perhaps not acting with as much caution as it should be exercising.”
Also, there are some who fear that this move could signal the beginning of the centralization of cryptocurrencies.
But after all, is said and done, we shall have to wait and see what happens next over the next few days as Bitwise prepares for this major breakthrough. Investors are expected to keep a keen eye, especially on Bitcoin’s value since it is directly affected by these developments.