The U.S. Securities and Exchange Commission (SEC) recently opened a brief window for applications seeking approval of what is known as a spot Bitcoin ETF. The SEC, following a similar move in December, is expected to give the thumbs up to the applications, giving a 90% chance of approval by January.
The spot Bitcoin ETF will give investors exposure to the cryptocurrency but without having to worry about buying, storing, or managing it. This provides a great investment opportunity for those looking to diversify their portfolios in the crypto market without worrying about the daunting security risks associated with keeping Bitcoin safe. The ETF could also attract institutional investors who may not feel comfortable investing in cryptocurrencies such as Bitcoin, as it may be seen as too risky.
Once approved, this will make the spot Bitcoin ETF the first institutional-grade ETF in North America of its kind, as the SEC has yet to approve other ETF applications, such as the VanEck-SolidX Bitcoin ETF, which has been in the review process for nearly two years.
It’s unclear how this ETF could affect the price of Bitcoin or other cryptocurrencies, but the fact that it will soon be approved could cause prices to skyrocket. As more institutional investors enter the crypto market, this could lead to more global adoption by big business, and ultimately, help the crypto world grow.