Spot Crypto ETFs Eyed for SEC Approval
Spot Crypto ETFs are being keenly explored by ARK Investment Management and several other firms, aiming to provide U.S. investors with exposure to cryptocurrencies through exchange-traded funds. Cathie Wood, founder and CEO of ARK Investment, has suggested that the U.S. Securities and Exchange Commission (SEC) might simultaneously approve multiple spot Bitcoin ETFs, indicating a potential broadening of investment options in the cryptocurrency space.
In an interview with Bloomberg on August 7th, Wood projected that if the SEC proceeds with any of the currently pending applications, it could potentially approve “more than one [ETF] at once.” ARK Investment Management submitted one of the recent spot Bitcoin ETF applications in June, adjusting the submission to include a surveillance-sharing agreement.
Today on @BloombergTV's ETF IQ @CathieDWood agreed with our assessment (below) that if spot #Bitcoin ETFs are approved by the SEC, it will be multiple at the same time and not just one. https://t.co/oNOeqs4HDL pic.twitter.com/K18qFNOtQL
— James Seyffart (@JSeyff) August 7, 2023
Wood’s statements echo a proposal from Grayscale, a company currently in litigation against the SEC for denying an application seeking to convert its Bitcoin Trust into a spot Bitcoin ETF. In July, Grayscale’s legal team submitted a letter to the SEC urging the regulator to consider approving all proposed spot Bitcoin ETFs simultaneously to avoid favoring one over the others.
Although the SEC has not yet sanctioned a spot crypto ETF in the U.S., it has allowed the listing of ETFs linked to crypto futures and a leveraged Bitcoin futures ETF from Volatility Shares Trust. Currently, the SEC has received crypto ETF applications from notable entities including Invesco, BlackRock, Valkyrie, VanEck, Wisdom, Fidelity, and ARK Invest.
Wood suggested that the SEC might extend ARK Invest’s deadline for its spot BTC ETF application. The U.S. financial regulator is expected to decide on ARK’s current application by August 13, either granting approval, rejecting it, or extending the decision through an extension or comment period. Since ARK filed the paperwork in May 2023, the SEC has a maximum time frame of 240 days—until January 2024—to arrive at a final determination.
The race to secure a listing for a spot crypto ETF in the U.S. has attracted significant attention within the crypto industry and media. This attention has particularly intensified following a submission from BlackRock, the world’s largest asset management firm.
We covered that development in an article here.
In contrast, regulatory bodies in other countries, such as Canada, have already granted approval for similar spot ETF filings from crypto companies.
In Australia, Monochrome Asset Management Pty Ltd, a crypto-focused investment management firm, along with its partner Vasco Trustees Ltd, has submitted an updated application for the Monochrome Bitcoin ETF (IBTC) to the Australian Securities Exchange (ASX). The IBTC will be the first spot Bitcoin ETF in Australia’s new regulatory framework, providing direct exposure to Bitcoin.
Conclusion
The growing interest in spot crypto ETFs signals a pivotal moment for the broader crypto mining and investment landscape. With major firms like ARK Invest and BlackRock driving applications, the potential approval by the SEC could legitimise the next wave of institutional cryptocurrency adoption. These developments are expected to bring increased attention to Bitcoin mining pool operations and investment in Bitmain miners, as investors seek secure and scalable exposure to digital assets.
Beyond ETFs, the intersection of decentralised finance and institutional investment is becoming more prominent. As DeFi trading continues to evolve, it offers new opportunities for individuals and institutions to participate in the crypto ecosystem alongside traditional financial instruments.
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