Influence of Wall Street Giants Integral to SEC’s Bitcoin ETF Decisions

The Securities and Exchange Commission’s (SEC) ongoing deliberation over the approval of a spot Bitcoin exchange-traded fund (ETF) within the United States has ignited speculation that a collective decision could encompass major Wall Street players, with BlackRock and Fidelity at the forefront.

This anticipation stems from a sense that the SEC faces considerable pressure to grant approval to several ETFs, especially given the underperformance of Futures-backed products in comparison to spot performance, resulting in detrimental effects on investors. Dave Weisberger, a seasoned market expert and CoinRoutes co-founder, emphasized this dynamic, suggesting that the regulator’s ultimate ruling might encompass all pending applications.

Presently, the SEC is scrutinizing eight applications for a spot Bitcoin ETF, a process marked by previous delays and rejections of this cryptocurrency product in recent years. The lineup of companies awaiting a decision includes prominent names such as Ark and 21Shares, Bitwise, BlackRock, VanEck, WisdomTree, Invesco, Galaxy Digital, Fidelity, and Valkyrie. Together, these entities collectively oversee a staggering $15 trillion in global assets.

In a move on August 11th, the SEC initiated a 21-day window for public commentary on the ARK 21Shares Bitcoin ETF proposal. The filing stipulates that the SEC is keen to ascertain whether the proposal is structured to effectively counteract fraudulent and manipulative activities. Moreover, the regulator has raised questions about Coinbase’s participation in surveillance-sharing, prompting commentators to assess whether Coinbase’s involvement would genuinely bolster the detection, investigation, and deterrence of manipulation and fraud in the Bitcoin price realm.

According to Ruslan Lienkha, Chief of Markets at YouHodler, the SEC’s primary concern centers on the possibility of market manipulation orchestrated by a significant player. This risk diminishes if the SEC decides to greenlight multiple ETFs from diverse investment funds. By doing so, the probability of manipulation decreases substantially, as these entities can engage in frequent trading with opposing stances.

The delay in the SEC’s decision hasn’t wielded a substantial impact on Bitcoin’s value, which hovers around the $30,000 mark as of the current moment. Mauricio Di Bartolomeo, Co-founder of the crypto lending platform Ledn, underlines that market participants expect the SEC to deliberate at length. The current decision’s impact on market expectations appears to be relatively muted.

The SEC retains two more deadlines before reaching a conclusive stance. The ARK 21Shares application faces its third deadline in January 2022. Valkyrie, on the other hand, holds the latest application and anticipates two forthcoming deadlines in January and March of the upcoming year.

The potential outcome of Bitcoin ETF approvals could catalyze a transformative shift in the cryptocurrency investment landscape. Ruslan Lienkha envisions that such an approval could infuse over $70 billion in liquidity into the Bitcoin market, fostering confidence among regular investors. The accessibility of Bitcoin through ETFs, coupled with professional guidance, could alleviate the need for individual investors to navigate intricate technicalities and analyze potential risks autonomously.

For more news, find me on Twitter or subscribe to my YouTube channel.

What is your opinion on this issue? Leave me your comment below! I’m always interested in your opinion!

Leave a Reply

Your email address will not be published. Required fields are marked *

Recommended for you