The U.S. Securities and Exchange Commission (SEC) is reportedly nearing a decision on approving Bitcoin exchange-traded funds (ETFs). This comes after detailed discussions between the SEC and various asset managers, including industry heavyweights like Grayscale Investments, BlackRock, Invesco and ARK Investments.
These companies are optimistic about introducing ETFs that would closely track Bitcoin's price.
Recent court rulings and advanced discussions, especially on technical aspects such as custody arrangements and investor risk disclosures, suggest a shift in the SEC's anti-Bitcoin ETF stance.
Some pioneers remain on sidelines
Despite the enthusiasm surrounding potential SEC approval for Bitcoin ETFs, some established players on the cryptocurrency ETF market are choosing to stay on the sidelines, Reuters reports.
Firms like ProShares, Amplify Investments and Roundhill are cautious, citing concerns over a crowded market and high regulatory and marketing costs. There is also some level of uncertainty regarding future demand.
Approval odds keep surging
The market's optimism about the SEC's approval of Bitcoin ETFs is at an all-time high, with the odds now surpassing 90%.
This heightened expectation is driving up the price of Bitcoin, which recently topped the $44,000 level.
The market is excited about the likely advent of a regulated, accessible investment product like a Bitcoin ETF. If approved, these ETFs would mark a significant milestone for the cryptocurrency industry.