Bitcoin ETF Hopes Take a Hit as SEC Delays Decision

Bitcoin ETF

The US Securities and Exchange Commission (SEC) has again deferred making a decision on whether to approve the first US exchange-traded fund (ETF) that invests directly in Bitcoin. This time, the delays involve applications from Franklin and Globe X.

The SEC has been reviewing a number of spot Bitcoin ETF applications for several years, but it has yet to approve any of them. The regulator has cited concerns about the volatility of Bitcoin and the potential for manipulation as reasons for its delay.

The deferrals of the Franklin and Globe X applications come after several other ETF filers have also had their applications delayed. This suggests that the SEC is still not comfortable with the idea of approving a spot Bitcoin ETF.

Despite the delays, there is still hope that the SEC will eventually approve a spot Bitcoin ETF. The cryptocurrency market has matured significantly in recent years, and there is now a growing body of evidence to suggest that Bitcoin is a legitimate asset class.

Also Read: Bitcoin ETF Approval: Will It Trigger a $100K Price Surge, or Will the Effect Be Gradual?

In the meantime, investors who are interested in gaining exposure to Bitcoin can do so through other means, such as buying Bitcoin futures or investing in Bitcoin miners. However, these options are not as convenient or cost-effective as investing in a spot Bitcoin ETF would be.

The SEC’s decision on spot Bitcoin ETFs is likely to have a significant impact on the cryptocurrency market. If the SEC approves an ETF, it would be a major vote of confidence in Bitcoin and could lead to a surge in investment. However, if the SEC rejects all of the spot Bitcoin ETF applications, it could be a major setback for the cryptocurrency industry.

Only time will tell whether the SEC will approve a spot Bitcoin ETF. However, the agency’s recent deferrals suggest that it is still not ready to take the plunge.

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