The growth of the cryptocurrency space has led many around the booming sector to continue to make demands from the Blockchain service providers of the space. Bitcoin exchange-traded funds (ETF), an example of a crypto ETF, are products that allow you to track the asset without owning or having any knowledge of it. The U.S Securities and Exchange Commission (SEC) has been adamant about issuing a license to Crypto ETFs in the country, despite many in space’s high demands. However, the launch of three new Bitcoin ETFs in Canada since last month has propelled global investment firm- VanEck to apply for a Bitcoin ETF license.
US SEC has up to 240days to respond
The confirmation of the application by VanEck for a Bitcoin ETF license was reported by the U.S SEC. The U.S financial regulatory body confirmed that the investment firm had submitted their application for the license and has promised to get back to them in the next 45days after evaluation. The American crypto community expects the U.S SEC ruling to favor VanEck, allowing the country’s first Bitcoin ETF to operate. The demand for Bitcoin ETF in the U.S had been high since 2018, with the SEC disapproving license applications for the crypto products. However, with Canada approving its first set of Bitcoin ETFs last month, many American crypto enthusiasts are optimistic that the country will follow on Canada’s part.
Before this time, VanEck, Bitwise Asset Management, Wilshire, and many other crypto asset and management firms have applied for the license but were all rejected due to the SEC’s concerns over cryptocurrency trading. The U.S SEC, in its first disapproval two years ago, sighted issues around the manipulation of Bitcoin and believe that until there is proof that the asset is not manipulated, they will not license the product. However, according to the law, if the U.S SEC cannot decide 45days, it could extend the evaluation period to almost eight months, depending on when it will conclude.
Demand for Bitcoin ETFs are at a high
While the American crypto community is positively awaiting the SEC’s decision on the new Bitcoin ETF application by VanEck, the Bitcoin ETF demand is currently high across the world. The advantage that the Bitcoin ETFs possess is enticing enough to keep the demands that high. Many crypto analysts believe that the nature of Bitcoin ETF, which is meant to interact with regular stocks, will further increase the rising adoption of Bitcoin into mainstream society. Another advantage of Bitcoin ETFs is that they do not allow their customers to get so much exposure to their assets and are typically in charge of their security and insurance. However, while the American community is earnestly awaiting their hopes of getting their first Bitcoin ETF, it is worthy to note that all three Bitcoin ETFs in Canada are doing exceeding well since inception.