The race for the first Bitcoin spot exchange-traded fund (ETF) in the United States is heating up following BlackRock’s recent application. With both former applicants and new players seeking permission from the U.S. Securities and Exchange Commission (SEC) to list a crypto ETF, the landscape appears to be shifting. However, it remains unclear whether the SEC will allow a Bitcoin ETF. On one hand, BlackRock’s initiative appears to have breathed new life into the race amid the ongoing crackdown on the crypto industry. On the other hand, the regulatory landscape remains uncertain as Wall Street titans back a newly launched crypto exchange called EDX Markets despite current regulations.
EDX Markets, which benefits from the support of heavyweights like Citadel Securities, Fidelity Investments, and Charles Schwab, has entered the U.S. crypto industry with a bang. The exchange currently supports trading of only four cryptocurrencies: Bitcoin, Ether, Litecoin, and Bitcoin Cash. In the coming months, EDX plans to introduce EDX Clearing, a clearinghouse to settle trades executed on the EDX Markets platform.
As the race for a Bitcoin spot ETF continues to heat up, at least three investment firms have filed following BlackRock’s move. Asset management fund WisdomTree seeks permission from the SEC to list its “WisdomTree Bitcoin Trust” for a third time. Global investment manager Invesco has reactivated its application for a similar product, followed by a request from Valkyrie Investments. Rumors suggest that the multi-trillion-dollar fund manager Fidelity Investments may also be looking to capitalize on the newfound frenzy for spot Bitcoin ETFs. While the SEC has not yet approved a single spot Bitcoin ETF product, the optimism in the market is growing.
However, not all news is positive in the world of crypto exchanges. U.S. judge-approved agreement between Binance.US and the SEC to avoid the freezing of the exchange’s assets, whereas Gemini is planning to expand operations beyond U.S. authorities’ reach. This has led to a sense of caution within the crypto community as regulatory pressures continue to build.
In conclusion, as the interest in Bitcoin spot ETFs and crypto exchanges continues to rise, so too does the uncertainty surrounding the regulatory environment. Crypto enthusiasts and investors alike must navigate this complex landscape while keeping an eye on both the potential opportunities and the challenges that lie ahead. Whether the SEC will finally allow a Bitcoin ETF remains to be seen, but the growing interest in this race certainly indicates a shift in the industry’s perception and approach to the emerging digital asset class.
Source: Cointelegraph
