- On Wednesday, 5 spot Bitcoin ETF applications will make to the Federal Registrar for SEC consideration.
- Some market players argue that the arrival of spot Bitcoin ETF won’t be a game-changer, except for the initial hype.
In June the U.S. Securities and Exchange Commission (SEC) received a flood of applications for the spot Bitcoin ETF, the most notable from BlackRock. Currently, the federal securities regulator has a total of six applications for review, from some of the top financial giants.
Earlier on Tuesday, the spot Bitcoin ETF application from Bitwise hit the Federal Register. Later today on Wednesday, July 19, the US SEC shall be reviewing five other applications that include: BlackRock’s iShares Bitcoin Trust, Fidelity’s Wise Origin Bitcoin Trust, VanEck Bitcoin Strategy ETF, WisdomTree Bitcoin Trust, and Invesco Galaxy Bitcoin ETF.
Last week, the SEC asked for public opinions on Bitcoin ETFs by publishing documents. However, the official review process only starts when the filings appear in the government’s daily gazette, called the register. This sets a deadline of 45 days, but it can further extend up to 240 days. The register contains important government documents, such as executive orders, agency regulations, and proposed rules that must be published by law.
Note that there’s no guarantee that the SEC will approve the spot Bitcoin ETF application. In the past, the federal securities regulator has rejected dozens of such applications. However, with the world’s largest financial asset manager BlackRock joining the bandwagon, optimism is high among crypto investors this time.
Valkyrie’s spot-bitcoin ETF hasn’t made its way to the Federal Register. However, the US SEC has accepted it for review said the company spokesperson.
Hype Surrounding Bitcoin ETF Fizzles, BTC Price Under $30,000
There’s been a lot of optimism surrounding the launch of the spot Bitcoin ETF with some of the top financial giants like BlackRock joining the bandwagon. Several proponents believe that this would open the floodgates of institutional investments coming to Bitcoin.
However, there are also skeptics who doubt that a US spot fund would make a significant difference. They argue that anyone who wanted access to exchange-traded Bitcoin products with similar functions as a spot tracker could already obtain them, although not perfectly, for over two years. And for the most part, they haven’t shown much interest in such funds.
Earlier this month, US banking giant JPMorgan also opined that the spot Bitcoin ETF approval is unlikely to bring any kind of crypto revolution. JPMorgan argued that such products have already existed in Canada and Europe, and have failed to see much traction.
Other crypto market proponents stated that there might be an initial rush, however, it remains to be seen whether the inflows can sustain over a period of time. In an interview with Bloomberg, Jillian DelSignore, managing director and head of strategic growth and solutions at FLX Networks, said:
Look at what we saw on futures front — it was a lot of money that went in Day One, but then — for all intents and purposes — it paused. I think we’ll definitely see multiple billions of dollars come in. I do think it will be a very early momentum-driven asset growth, and then the question mark for me is what happens from there. Does it quiet down?
It seems that the craze surrounding the spot Bitcoin ETF has already started to fizzle out. Over the last few weeks, Bitcoin continues to face selling pressure. As of press time, the BTC price is trading under $30,000.
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