The U.S. Securities and Exchange Commission (SEC) has taken a significant step in the world of cryptocurrency by launching its review of the latest bitcoin exchange-traded-fund (ETF) applications.
This move comes as the regulator seeks to explore the potential implications of allowing bitcoin ETFs in the financial markets.
While the SEC published documents last week inviting public consultations, the official review process will commence once the filings are published in the federal register.
This critical phase will evaluate the ETF applications submitted by several notable players, including Cboe’s Wise Origin, WisdomTree, VanEck, Invesco Galaxy, and ARK 21Shares.
In a bid to gather valuable insights from various stakeholders, the SEC has invited comments on all five of Cboe’s ETF applications.
This move demonstrates the regulator’s commitment to transparency and thorough examination before making any final decisions regarding these ETF proposals.
Last week, cryptocurrency exchange Coinbase experienced a surge in its shares, climbing as much as 16%. This boost was a direct result of an agreement between Coinbase and Cboe’s BZX Exchange to maintain a surveillance-sharing agreement for the five ETF applications. Such agreements are crucial in ensuring market integrity and regulatory compliance.
The SEC’s review of bitcoin ETF applications marks a pivotal moment for the cryptocurrency market. If approved, these ETFs could pave the way for greater institutional and retail investor participation, potentially leading to increased liquidity and mainstream adoption of Bitcoin as an investment asset.
