The U.S. Securities and Exchange Commission (SEC) has initiated its review of the most recent bitcoin exchange-traded-fund (ETF) applications.
This development has attracted significant attention from investors and industry stakeholders alike. In a move that has already impacted the market, Coinbase, a leading cryptocurrency exchange, witnessed a substantial surge in its shares following an agreement with Cboe’s BZX Exchange regarding surveillance-sharing for the five ETF applications.
The SEC’s Review Process: Last week, the SEC published documents soliciting public input on the proposed ETF applications.
However, the official review process commences once the filings are published in the federal register. The SEC has called for comments on all five applications submitted by Cboe, including Wise Origin, WisdomTree, VanEck, Invesco Galaxy, and ARK 21Shares. This signals the SEC’s intent to carefully consider the potential approval of bitcoin ETFs.
Coinbase’s shares experienced a significant boost, surging up to 16% following the announcement of its agreement with Cboe’s BZX Exchange.
This agreement ensures the maintenance of a surveillance-sharing arrangement for the five ETF applications. The market response to this development highlights the anticipation and excitement surrounding the potential approval of bitcoin ETFs, as Coinbase is seen as a key player in the crypto ecosystem.
The SEC’s review of bitcoin ETF applications has far-reaching implications for the crypto market. If approved, bitcoin ETFs could provide mainstream investors with a regulated and accessible avenue to gain exposure to cryptocurrencies.
This could result in increased institutional participation, greater liquidity, and potentially significant price movements for bitcoin and the broader crypto market.
Additionally, the approval of bitcoin ETFs could improve market transparency and investor protection by subjecting these investment vehicles to regulatory oversight.
It would also enhance the credibility and legitimacy of cryptocurrencies in the eyes of traditional financial institutions and retail investors.