The Securities and Exchange Commission of the United States has been showing a red card for any Bitcoin ETF applications. The largest reserves of Bitcoin are present in the USA. Trusts like Grayscale have over 654,885 units for their GBTC shares. On the other hand, MicroStrategy owns around 100,000 Bitcoin after its recent debt bonds.
Other countries like Canada have already approved multiple Bitcoin ETFs. In the USA, all Bitcoin ETF applications are ignored and put on the back burner by SEC. Coinbase, the largest crypto exchange platform in the USA, recently announced that SEC is close to softening its strict stance on the matter of Bitcoin ETFs. The company recently told media the bullish trend of Bitcoin could divert the delay and result in approval of a Bitcoin ETF before the end of the current year.
SEC has been Rejecting Bitcoin-related ETF Applications since 2017
Coinbase representatives have recently claimed that SEC has been putting off the Bitcoin ETF-related applicants for a long time. The company claimed that SEC issues with the ETF approval date as far back as 2017, which was a noteworthy bull run year. Coinbase has not predicted a precise date or timeframe for approval of Bitcoin-related ETF.
It should be noted that ETF or exchange-traded fund is an asset class that allows the investors to gain exposure in cryptocurrencies with the help of investing in stocks. Many investors and market analysts connect the approval of a Bitcoin ETF as a major bullish sign for the flagship cryptocurrency. Coinbase claims that more than a dozen applications for Bitcoin ETF approval are marinating in the SEC presently.
Coinbase recently filed for a public listing and got registered on NASDAQ. The company explains that the approval of a Bitcoin ETF applicant like Fidelity would also prove to be beneficial for the enterprise. The crypto exchange platform claims that Fidelity uses the custodial, trading, and staking services offered by Coinbase to accommodate its consumers.
When the Bitcoin ETF approves, the increased volumes of transactions will benefit Coinbase’s profits. The company did not pose a question about Ethereum related ETFs. There are around 3 ETH ETFs operating in Canada since April 2021. The US SEC has also received several applications for Ethereum ETFs to date that are yet to be approved.