Based on recent reports by SEC commissioner Hester Peirce, the regulatory body no longer has the responsibility to delay the approval of exchange-traded funds (ETFs) for major crypto firms. Following the comments by the commissioner, the ETF approval rate has increased, and this attests to major crypto sentiments in the matter, confirming the inevitable adoption of these ETFs over futures.
This year has seen a seesaw in digital currency movements, juggling legal issues and recent market surges. The major actions attributing to this movement include the ETF approval that has been anticipated all year, and the recent confirmation has the crypto community in a frenzy.
The cryptocurrency community has long anticipated the approval of spot exchange-traded funds by the United States Securities and Exchanges Commission (SEC) all year long, especially for Bitcoin-spot ETFs. Rumors of approval have been seen to affect the BTC market price which saw a sudden surge in October amid a false report but still maintained its bullish rally after a correction retracement.
At the time Hester Peirce made her remarks, Bitcoin had surged to $37,490 from its price of $26,750 in early October. This was between the period after Peirce shared her reviews in an interview on Bloomberg TV that was published on Wednesday. The record shows a 40% increase in its price over the past month.
In the interview on Bloomberg Crypto with Kailey Lenzi, the Securities and Exchange Commission’s commissioner said:
I’ve thought for many years now that there’s no reason for us to stand in the way of a spot Bitcoin exchange-traded product. […] We got a little bit of a nudge from the court. And we’ll see where we go from here.
SEC commissioner Hester Peirce
She commented that the SEC’s delay in approving spot Bitcoin exchange-traded funds is capricious, and this was directed at the pending Grayscale Investment Bitcoin ETF. Peirce noted this while referring to the United States Circuit Court of Appeals and stated the refusal would be arbitrary.
The crypto community also received her reviews, and enthusiasts have commented on her remarks. Michael van de Poppe, a crypto analyst, said that Peirce’s remarks were “very positive news.” The analyst also added that Bitcoin’s price is closing in on its resistance level and might break to fresh highs as per other expert market predictions.
Buzz on the awaited spot Bitcoin ETFs
The Securities and Exchange Commission is currently reviewing 12 Bitcoin-spot exchange-traded funds applications that have gone through amendments and corrections. Some enthusiasts have also commented that the regulatory body could approve a minimum of 9 applications out of the total.
Currently, there are 14 regulated firms that are seeking to launch their ETFs and await approval from the SEC. They include Grayscale Investments, BlackRock, Invesco, 21Shares with ARK Invest, VanEck, Bitwise, Valkyrie, Fidelity, Wisdomtree, Hashdex with Franklin Templeton, and Global X ETFs.
In light of these pending approvals, Peirce was questioned whether the Grayscale ETF application would lead the checking list, but she was reluctant to answer. She was quoted saying, “All of those are under consideration now, so I can’t speak to them.”
These remarks also increased investor confidence in Bitcoin, and an influx of investment capital is expected in the crypto market, targeting Bitcoin ETFs.
However, Cathie Woods from ARK Invest, together with the Bloomberg expert analysts, is anticipating simultaneous approval by the regulator. The SEC also recorded missing an approval window for the ETFs this month in light of approving all applications listed.
The regulatory authority was noted pushing back the initial deadlines with regard to making their awaited decision. With the news, the market has started to recover.
