Bulls Refile Bitcoin ETF Despite SEC Rejections

Bulls Keep Hopes High for Bitcoin ETF Despite Setbacks from SEC

ARK Invest and 21Shares, two of the significant investment firms in the US, are on board to trade a Bitcoin exchange-traded fund(ETF) despite the regulatory challenges in the country. The SEC has rejected their bid twice, but they remain optimistic and have refiled their proposal to launch a Bitcoin spot ETF with the SEC on Tuesday. The ETF aims to provide investors with indirect exposure to Bitcoin without holding onto the asset aptly. An ETF typically tracks prices and expects investors to participate in commodities, bonds, currencies, or stocks without acquiring the asset directly. Even though Futures Bitcoin ETFs have proven successful in the country, a Bitcoin-based spot-product remains elusive in the American crypto sector.

Regulatory hindrances notwithstanding, Wood’s ARK Invest and 21Shares wrote in a statement, “we recognize that given the current regulatory environment in the U.S., the journey to a spot Bitcoin ETF won’t happen overnight but 21Shares is committed to the U.S. market and advancing a regulated spot crypto product. High-profile companies eagerly await approval from the US regulatory body for direct pegs to the cryptocurrency industry.”

Slow approvals of Bitcoin-based products have led to stakeholders often citing market manipulation in the virtual asset space as a matter serious enough for hindrance in their processes’ functioning.

An approval by the SEC for a spot Bitcoin ETF remains essential for players hailing from Crypto gaming to investment in franchises entirely as virtual assets. While some of these have met reasonable outcomes, that pattern of obstruction shows reservations regarding launching the niche here either citing the non-developed competitive ecosystem or the shortage of necessary government regulations around bitcoin-related business fields.

The industry’s upside remained expected while acknowledging the regulatory measures’ bottom-line on blockchain business in the United States when market observers highlighted potential value to be had interest markets operated alongside crypto businesses, streamlining virtual asset trading operations across derivatives, futures, and spot currency forms.
[h/t Mathew Di Salvo]