The US Securities and Exchange Commission (SEC) is set to make a decision on the listing of an ETF based on the cryptocurrency Bitcoin by December. After months of speculation and anticipation, the ETF application by VanEck has been met with several delays, as the regulatory body has yet to find common ground on the listing.
The SEC’s recent comments suggest that a decision should come in December – this is a critical time for the fate of the ETF as the regulators consider the pros and cons of allowing an ETF based on Bitcoin. The soon-to-be-made-public decision could have an immense impact on the price of Bitcoin and the cryptocurrency market as a whole as institutional money could potentially flood in with the stamp of approval from the SEC.
The application by VanEck is currently under review, and the crypto-space is eagerly awaiting a decision from the SEC. The regulators have to balance whether the ETF is a security or a commodity, and if the ETF can handle the volatility associated with the cryptocurrency space. In addition, the regulators must also review the underlying Bitcoin spot market and the corresponding options market.
Some experts believe that the SEC is waiting for the market to be fully mature before making a decision. With a few more successful Bitcoin exchanges and well-regulated options markets, the chances of the ETF getting approved become higher.
Overall, it’s likely that the SEC will make an announcement in December. Whatever the decision, the effect will reverberate far and wide and will impact the crypto-market in a big way.
