It is finally happening. The U.S. Securities and Exchange Commission (SEC) will not appeal a recent court ruling against it. That pays the way for a Grayscale Bitcoin exchange-traded fund. The ETF will increase demand and daily transaction volumes for bitcoin (BTC). This is a bullish event.
The SEC will not challenge the court’s ruling that found it wrong to reject Grayscale Investments from creating a spot bitcoin ETF. The SEC may review Grayscale’s application next.
Bitcoin investors cannot count on an expedited review process for the ETF. The SEC may extend its review time. Still, after Grayscale satisfies various surveillance agreements that prevent fraud in bitcoin futures-based ETFs, trading should start.
Blackrock (BLK) is a heavy-weight player in the ETF market. It has a filing that is pending with the SEC for a spot bitcoin ETF. Similarly, Fidelity and Invesco have filings. With many firms supporting a BTC ETF, trading will commence for everyday retail investors.
The stock market needs an alternative asset class that hedges against commodities, stocks, and currency. Gold was traditionally a hedge against market volatility. Once the SEC approves the BTC ETF, retail investors have more choices. This is an attractive asset because Bitcoin is the bell-weather of the cryptocurrency market.
