Will SEC Give Green Signal to Bitcoin Spot ETF?

When it comes to the crypto market and especially investing in digital assets, the investors of the world seem torn as to whether they should invest in the digital asset directly or into some kind of fund which is tracking its performance and values. Many investors tied with forex and stocks market were not very fond of pouring money directly into digital assets, and that is why multiple Bitcoin futures ETF were approved by the Securities and Exchange Commission so they could get a chance to invest into a fund that is tracking dedicated digital assets such as Bitcoin.

These Bitcoin futures ETFs are doing great as they are trading consistently on the stock market; given the success of these particular exchange-traded funds, there were talks of SEC approving a Bitcoin spot futures ETF. A spot ETF allows the investors to make direct deposits into the asset for which the spot ETF is developed and approved. So, in a sense, investors would have been able to invest directly into Bitcoin if there was a spot ETF for Bitcoin available.

SEC Rejected Several Applications of Spot Bitcoin ETFs

Multiple applications were filed to the SEC so it could approve a spot Bitcoin ETF, but it has declined all of these. According to many professionals, it might not be able to see a spot Bitcoin ETF hitting the US market until the half of 2022. SEC seems speculative for providing approval to spot Bitcoin ETF on the basis that the crypto itself is extremely volatile. So, what would become of the fund that is evidently based on that very asset that shares such extreme volatility? In its own way, SEC is trying to save the investors from the financial wreck it might become in the future.

But according to many ETF professionals and experts, the approval of a Bitcoin spot ETF is inevitable, it might not happen today or tomorrow, but it will become a bustling reality in the near future. The applications for the approval of a spot Bitcoin ETF are still being received by the Securities and Exchange Commission, but it is not entertaining any of those as the work is progressing to give a chance to the potential Bitcoin futures ETF applications.