Bittime - The United States Securities and Exchange Commission (SEC) issued a surprising decision for Bitcoin (BTC) enthusiasts . The SEC ordered First Trust Advisors and SkyBridge Capital to declare their Bitcoin Exchange-Traded Fund (ETF) applications as abandoned. This decision adds to the SEC's long list of rejections of Bitcoin ETF applications in the United States.
First Trust and SkyBridge, a digital asset investment firm led by Anthony Scaramucci, applied for a Bitcoin ETF in March 2021. However, their fate was similar to that of many other applicants: their application was rejected in January 2022.
This rejection further fuels the question among investors: Will Bitcoin ETFs forever remain a pipe dream in the United States?
Root Cause Analysis of Repeated Bitcoin ETF Rejections
The repeated rejection of Bitcoin ETF applications by the SEC is worth noting. The following are several factors that are the SEC's main considerations:
1. Regulatory Concerns: The cryptocurrency market is still relatively new and lacks comprehensive regulation. The SEC is concerned about the potential manipulation of Bitcoin prices and the lack of transparency in the management of crypto assets.
2. High Volatility: Bitcoin is known for its sharp price fluctuations. The SEC was concerned that ETF products tracking Bitcoin would be too risky for retail investors.
3. Security: Hacking and theft are still a scourge for cryptocurrency wallets and exchanges. The SEC wants to ensure the safety of Bitcoin assets held by ETF issuers.
A Glimmer of Hope: BlackRock's Bitcoin ETF Approval
Amidst the doubts, the SEC's approval of BlackRock 's Bitcoin ETF in October 2022 was a bright spot. This approval marks a new era for Bitcoin investment that is more accessible to institutional investors.
However, it is important to note that this approval does not mean a green light for all Bitcoin ETF applications. The SEC will continue to strictly review every filing and prioritize investor protection.
BTC/USDT Bitcoin Price Today
Source: Bittime.com
On March 13, 2024, the price of Bitcoin BTC/USDT was at $72,198 per coin, up 0.46% in 24 hours and 13% in the past week.
Also Read How to Buy Crypto:
The Future of Bitcoin ETF
Experts estimate that the approval of BlackRock's Bitcoin ETF is just the first step. In the future, we may see the emergence of different types of Bitcoin ETFs with different investment strategies.
Some potential types of Bitcoin ETFs:
- Futures-Based Bitcoin ETFs: These ETFs track the price of Bitcoin futures contracts traded on futures exchanges.
- Physically Based Bitcoin ETFs: These ETFs physically store Bitcoin and track its value directly.
- Index-Based Bitcoin ETFs: These ETFs track the performance of a basket of crypto assets tied to Bitcoin.
Bitcoin ETF Challenges That Remain
Although the approval of the BlackRock Bitcoin ETF offers a glimmer of hope, several challenges still loom over the future of Bitcoin ETFs in the United States:
1. Regulatory Developments: The future of Bitcoin ETFs will be greatly influenced by overall regulatory developments in crypto assets. Regulatory uncertainty could hinder the approval of new ETFs.
2. Bitcoin Market Performance: Bitcoin price volatility remains a major concern for the SEC. The stability of the Bitcoin market will be an important factor in determining future ETF approval.
3. Investor Confidence: Building investor confidence in the Bitcoin ETF product and its management will be the main key to long-term success.
Conclusion
The future of Bitcoin ETFs in the United States remains full of opportunities and challenges. The approval of the BlackRock Bitcoin ETF is a positive first step, but there are still many hurdles to overcome.
For investors who are interested in investing in Bitcoin via ETFs, it is important to continue to follow regulatory developments, choose reputable ETF products, and carry out careful fundamental analysis.
Even though it offers easy investment, Bitcoin is still an asset with high volatility. Therefore, investors must remain wise in managing risk and understand their risk profile.
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How to Buy Bitcoin (BTC) on Bittime
You can buy and sell Bitcoin (BTC) in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
Bitcoin (BTC) is available on Bittime with the market pair BTC/IDR . To be able to buy BTC IDR at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn the complete guide on how to buy Bitcoin (BTC) on Bittime .
Monitor price chart movements for Bitcoin (BTC ) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
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DISCLAIMER: This article is informational in nature and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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