The iShares Bitcoin ETF approval is on the horizon, signaling potential for increased institutional investment in crypto.
It looks like the highly anticipated approval of the iShares Bitcoin ETF will happen soon. According to Reuters, a tweet from Bloomberg analyst Eric Balchunas stated that the US Securities and Exchange Commission (SEC) is getting close to approving the financial instrument. Even though official confirmation is still pending, this report has already created a stir in the Bitcoin community and may encourage more institutional investment in the cryptocurrency.
SEC to Accept Bitcoin ETF on Spot
The concept of a Bitcoin exchange-traded fund (ETF) has captivated investors’ attention for an extended period. Through exchange-traded funds (ETFs), people can invest in assets without really owning them. In this situation, investors would have a straightforward, regulated way to be exposed to fluctuations in the price of Bitcoin without having to hold the cryptocurrency thanks to the iShares Bitcoin ETF.
An online financial news source called Benzinga provided the initial report regarding the SEC’s impending approval. More credence was added to the report when Balchunas later confirmed that this was also a headline on the Reuters terminal. Though Reuters is a reliable source, the SEC has not yet released a formal statement.
For institutional investors, who presently encounter several challenges when investing in cryptocurrencies, the approval of this ETF may signify a turning point. Custody concerns and regulatory obstacles have historically discouraged this industry. For these investors, the ETF might offer a simpler, safer option that could stabilise the market and increase liquidity.
But the bitcoin market is notorious for its wild swings, which are frequently caused by hearsay and speculative news. Therefore, it would be wise to hold off until the SEC makes a formal pronouncement.
Price of Bitcoin Increases
The price of Bitcoin surged by more than 10% on Monday afternoon in reaction to the unverified rumours, surpassing the $28,000 mark.
Unverified SEC filings indicate that US regulators will approve the iShares Bitcoin spot ETF. Following this revelation, Bitcoin has increased by more than 10%, according to a note from XTB.
