On October 16, the crypto community’s hopes briefly surged upon hearing the news of a Bitcoin ETF approval, only to be dashed when BlackRock denied the information.
Since BlackRock, VanEck, Invesco Galaxy, ARK 21Shares, and other financial industry giants filed applications to create spot Bitcoin ETFs in mid-June, the asset has risen in price by 8%. Over the same period, the second largest cryptocurrency by capitalization, Ethereum (ETH), lost 7.5% in price.
Previously, the SEC has repeatedly rejected applications from other issuers to create such products, citing problems with the crypto market and a lack of investor protection. At the same time, the SEC gave the green light to Bitcoin futures exchange-traded funds, which offer investors access to futures contracts rather than the asset itself. The first was ProShares’ Bitcoin Strategy ETF, which became available to investors on the New York Stock Exchange in October 2021.
Exciting changes are happening on the ETF front. Let’s take a look at the latest news.
Grayscale paves the way to a Bitcoin ETF
On October 13, the US Securities and Exchange Commission (SEC) decided not to appeal the recent court decision in favor of Grayscale Investments. This refers to the rejection of Grayscale’s application to convert their GBTC trust into a spot Bitcoin ETF.
What does it mean? The decision clears the way for Grayscale’s SEC filing to be reexamined. A successful transformation could improve investors’ access to Bitcoin through traditional investment channels, increasing the cryptocurrency’s integration into broader financial circles.
