Bitcoin ETFs are a big issue in the cryptocurrency world. It has been a difficult battle for financial firms to obtain the Securities and Exchange Commission (SEC) to approve the country’s first bitcoin ETF. The push for clearance has accelerated in recent months, with more institutional investors throwing their hats into the ring with cryptocurrency. Several funds have filed for crypto ETFs in the country, but none have obtained regulatory clearance.
Tens of crypto ETFs have been pending SEC clearance for the past eight years. Canada and Brazil are the only nations having approved crypto ETFs, and while US individuals can trade crypto ETFs through ROTH accounts, the country still lacks a recognised crypto ETF. Ahead of imminent bitcoin ETF approvals, asset manager James Seyffart and colleague Eric Balchunas predict that the SEC will approve the first U.S. bitcoin ETF by a 75 percent margin.
Seyffart’s 75% chance prediction is based on two elements. The majority of these issues revolve around previously approved mutual funds and SEC Chairman Gary Gensler’s attitude on cryptocurrency. Gensler has been quoted in the media for his views on the cryptocurrency field, namely on crypto regulation. The SEC, according to Gensler, has no plans to ban cryptocurrencies because that is a matter for Congress to decide, but has stated that it is working to regulate the industry.
According to Seyffard, a bitcoin ETF would have the same wording as a registered Canadian mutual fund. The asset manager noted that because the SEC authorised the mutual fund with the identical terminology, the bitcoin ETF has a good probability of being approved as well.
Seyffart also mentioned Gensler’s view on crypto ETFs. Gensler had previously expressed interest in evaluating ETF registrations, particularly if they were “restricted to CME Bitcoin Futures.”