A highly-anticipated event in the cryptocurrency world might be just around the corner. Bloomberg Intelligence suggests that the launch of a spot Bitcoin exchange-traded fund (ETF) in the United States could happen right before Labor Day on September 4th. This news has caught the attention of many in the industry, as a Bitcoin ETF has been a long-standing desire for investors. However, the final decision ultimately lies in the hands of the US Securities and Exchange Commission (SEC).
The SEC is expected to respond to several applications from prominent companies such as BlackRock, Bitwise, WisdomTree, VanEck, and Invesco in the coming days. The agency has the authority to approve, reject, or postpone the filings. Bitwise’s application will be the first one the SEC considers, with an announcement anticipated on Friday, September 1st. The decision on the other four filings presented by BlackRock, Invesco, WisdomTree, and VanEck is expected on Saturday, September 2nd.
Despite the industry’s excitement, skepticism remains high regarding the SEC approving a Bitcoin ETF this week. Roxanna Islam, the associate director of research and head of sector and industry research at VettaFi, expresses doubts about the SEC’s decision. Islam believes that the SEC will likely delay its approval, especially after their recent postponement of ARK Investment Management and 21Shares’ joint effort to launch a spot Bitcoin ETF. Islam suggests that the SEC may prioritize a decision on Grayscale’s lawsuit before approving any spot Bitcoin ETF filings.
In the past, the likelihood of receiving approval for a Bitcoin ETF seemed slim. However, the odds began to shift when BlackRock, a prominent financial institution, joined the bandwagon. BlackRock’s involvement, coupled with their impeccable track record with the SEC, instilled optimism in the crypto space. Many now believe that a spot Bitcoin ETF may finally see the light of day in the world’s largest economy.
Several factors may influence the SEC’s decision regarding BlackRock’s Bitcoin ETF application. For instance, the US government and the Federal Reserve have placed great trust in BlackRock in the past, even asking the asset manager to develop a rescue plan during the 2008 Financial Crisis. Additionally, BlackRock’s CEO, Larry Fink, previously referred to Bitcoin as an “index of money laundering” in 2017. However, he has since aligned his stance to support the asset. Moreover, BlackRock already has experience in the cryptocurrency field, having previously launched a Bitcoin private ETF for institutional investors.
The existence of spot Bitcoin ETFs in other regions, such as Canada and Europe, provides further support for the case of approval in the US. Furthermore, the influx of applications from other asset managers like Vanguard and Fidelity further demonstrates the growing interest and demand for a Bitcoin ETF.
The highly-anticipated launch of a spot Bitcoin ETF in the United States is on the horizon. The SEC’s decision on the pending applications will determine the fate of this financial product. While skepticism remains due to past rejections and delays, BlackRock’s involvement and various factors may sway the SEC’s decision in favor of a Bitcoin ETF. If approved, this milestone could open new doors for Bitcoin in the mainstream financial landscape.