In a breaking development, the U.S. Securities and Exchange Commission (SEC) has reportedly approved the iShares Bitcoin ETF, marking one of the first significant approvals in spot Bitcoin ETFs. Bitcoin jumped to $29,850 following the news before retracing to $28,880 as of press time.
The SEC had delayed its verdict on multiple proposed rule changes, including those from Fidelity (Wise Origin), VanEck, WisdomTree, and Invesco. These firms aimed to introduce a spot Bitcoin ETF via the Cboe BZX Exchange.
The regulator had also postponed decisions on Valkyrie Investments and BlackRock (iShares) that aim to offer ETFs via Nasdaq, along with Bitwise, which plans to launch its ETF via NYSE Arca—the SEC had set most of these decisions for Oct. 17, with Valkyrie set for Oct. 19 and Bitwise scheduled for Oct. 16.
It remained uncertain whether the SEC would further delay its decisions once the set deadlines were met. The past experiences of the companies mentioned above, who had their previous Bitcoin ETF applications rejected by the SEC, cast a shadow over the process. The potential for the SEC to reject the latest series of ETF proposals in October would have initiated a new cycle of applications, approvals, delays, and rejections.
However, this approval of the iShares Bitcoin ETF signals a potential shift in the SEC’s stance. The backdrop to this approval included a promising group of spot Bitcoin ETF applications and proposed rule changes. Asset management heavyweight BlackRock, the parent company of iShares, has historically enjoyed a high success rate with past ETF proposals, and its proposed Bitcoin spot ETF is backed by Coinbase for its surveillance-sharing agreement.
This approval could have broader implications for similar applications, particularly those based on BlackRock’s proposal. Success for BlackRock may hint at potential approvals for these similar proposals. However, it’s crucial to remember that despite any prevailing optimism in the market, the SEC’s decision to approve one spot Bitcoin ETF does not guarantee a similar outcome for others at the next deadline.
Reportedly, Grayscale’s intent to convert its GBTC fund to an exchange-traded fund has also contributed to general optimism, demonstrating the potential for future approvals. Nevertheless, the SEC’s approval of the iShares Bitcoin ETF is a crucial step in expanding crypto finance, signaling a possible end to the repeated cycle of approvals, delays, rejections, and new…
Click Here to Read the Full Original Article at Bitcoin (BTC) News | CryptoSlate…
