The U.S. Securities and Exchange Commission (SEC) recently opened a brief approval window for spot Bitcoin exchange traded fund (ETF) applicants. The window is set to close in mid-January 2021 with a 90% chance of the SEC giving the go-ahead to one or two applicants. This approval would make it possible for the ETFs to be listed on traditional exchanges, allowing investors to purchase shares of the ETF without buying the underlying asset—in this case, Bitcoin.
The news of the window opening is likely to trigger a surge in Bitcoin prices, as investors are increasingly interested in gaining exposure to the digital currency in a secure and regulated manner. In addition, the SEC’s willingness to consider the Bitcoin ETF applications may be seen as a sign that the agency is now more open to cryptocurrencies. This could mean that other crypto products, such as crypto-backed bonds and investments in digital asset platforms, could soon be approved as well.