The United States Securities and Exchange Commission (SEC) is yet to approve a single cryptocurrency exchange-traded fund (ETF) application
The United States Securities and Exchange Commission (SEC) currently has numerous cryptocurrency exchange-traded fund (ETF) applications to consider. However, the federal regulator is yet to approve a single one of them.
Last month, the SEC chair Gary Gensler pointed out that the regulatory agency would prefer to approve an ETF that doesn’t directly track the spot price of cryptocurrencies. Since then, several investment firms, including Galaxy Digital and VanEck, have submitted Bitcoin futures ETF applications with the SEC.
Although the regulator is yet to approve any of them, Gensler reiterated yesterday that he supports Bitcoin ETFs that seek to invest in futures contracts rather than the actual cryptocurrency itself.
He stated that Bitcoin ETFs that invest in futures contracts on the Chicago Mercantile Exchange (CME) and register according to the Investments Company Act of 1940 have a higher chance of gaining approval. He added that he looks forward to his staff reviews of such cryptocurrency ETF applications.
While the SEC is yet to decide, some industry experts are confident that the regulatory agency will approve some of the applications by next month. The SEC is currently reviewing at least two dozen cryptocurrency-focused ETF applications.
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In addition to the Bitcoin futures ETFs, the SEC is also reviewing ETFs seeking to track the performance of the actual cryptocurrencies. The SEC is reviewing nine Bitcoin ETF applications and three other ETFs.
While the United States is yet to approve a single cryptocurrency ETF, they are already available in certain countries. Canada has already approved a few Bitcoin and Ether ETFs. Brazil and the United Arabs Emirate (UAE) also have cryptocurrency ETFs listed on their stock exchanges.
Institutional investors in the United States, such as Ark Invest, have already started investing in the Canadian Bitcoin ETFs. With the SEC still delaying its decision, more investment firms could look to invest in foreign cryptocurrency ETFs.