Approving a cryptocurrency ETF will surely lead to more major investors and money manager pulling their weight behind the crypto market. Sadly there has not been an approval for all BTC ETFs proposals sent to the SEC this year. However, a positive news stating that the Securities and Exchange Commission(SEC) will be reviewing nine application by the end of October has surfaced.
BTC ETFs to Get Reviewed
These nine BTC ETF proposals are from three different applicants. It was reported that these proposals have requested different BTC ETFs to be traded on and listed on their various platforms. The SEC has made it known that it would be reviewing each of these proposal based on the change to rules governing the crypto market since they were submitted.
The SEC will be reviewing the BTC ETFs proposal so as to reach a conclusion whether BTC ETFs just like stocks, commodities, bonds and Forex ETC will be available for trading on various exchanges.
The principle behind the BTC ETFs is expected to work the same way other ETFs currently active in the market works.
Typically ETFs works with arbitrages meant to ensure its trading value is kept close to its net value.
However, upon approval by the SEC, some minor changes might occur. This has been pointed out by the SEC has one of the major reason why it is still reluctant when it comes to approving the ETFs when they were proposed earlier on.
So far, it has been recorded by the SEC that at least at least nine BTC ETFs applications have been rejected this year alone. Apart from the fear of having a divergent ETFs, SEC believes the Crypto market it too small and can be easily manipulated.
Since the rejections, the price of bitcoin has tumbled significantly. The rejections have also been identified as the cause of the dwindling investments in the crypto market across the USA.
If SEC decides to grant the ETFs approval once the review is over, the resulting outcome is expected to be a very positive one.