US SEC has Approved another Bitcoin-Linked ETF

There is another Bitcoin-bound ETF that is going to be listed on a major equity exchange in the USA in the next week. As reported by media, the Securities and Exchange Commission has changed its stance on holding out approval for Bitcoin ETF applications. The newly appointed SEC Chief, Gary Gensler, shared a new condition for the ETF applicants if they want to get a green light for their projects.

According to the new conditions, the Bitcoin ETFs are going to be tied to the other derivatives related to the flagship cryptocurrency rather than directly depending on the top coin. The first-ever ETF application to get approval from SEC was filed by ProShares. The company is an expert in the issuance of ETF and reverse ETF products. The latest approval for Bitcoin-related ETF has been granted to investment firm VanEck.

SEC has received a considerable amount of criticism from the investors in the past for ignoring the ETF application and rejecting most of them. However, the SEC commissioner has explained that the regulatory agency has decided to do so to protect the interest of US investors and due to the lack of clarity on the matter of DeFi markets. However, it is noteworthy that the government has continued to delay the matter of legislating digital assets thus far.

The latest Bitcoin ETF that has been approved by ETF will be listed under the XBTF ticker, and it is going to be listed on the CBOE BZX exchange market.

SEC did not Approve Spot Bitcoin ETF

Only a day ago, SEC rejected the proposal for a spot ETF application for Bitcoin submitted by VanEck. SEC issued a 51 paged rejection order that highlighted the issues like market manipulation and fraud. It is worth noting that a spot ETF allows the investors to purchase and sell the ownership of a cryptocurrency directly.

On the other hand, one spot ETF has been able to get listed by Valkyrie under the ticker BTF. The BTF was listed on NASDAQ on 22nd October. Following in the footsteps, Grayscale that is known in the market for owning the largest commercial Bitcoin reserves, has also submitted an application with SEC for turning its Bitcoin Trust into a spot ETF.

By Howard Ford
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