, 2022-06-16 10:30:00,
The Bitcoin ecosystem tends to be a very sensitive space with decisions, news, regulations and announcements by big financial institutions, governments and business magnates making the marketplace susceptible to wild fluctuations in price.
A price boom that could storm the bitcoin market with a great impact on investors is a bitcoin spot exchange-traded fund (ETF) proposal. This ETF filing is quite promising considering its prospective influence being envisaged. As stakeholders and crypto enthusiasts are seeking a headway in getting approval from the U.S. Securities and Exchange Commission (SEC).
CEO of Grayscale Investments, Michael Sonnenshein, made a good move by holding a meeting with U.S. financial regulators, in a bid to seek approval for an overdue ETF request the company had with the SEC. The request aims at converting the Grayscale Bitcoin Trust (GBTC) into an ETF: A massive proposal that could unlock $8 billion worth of returns for investors, as reported by CNBC.
What Has Held Up Spot ETF Approval?
The bitcoin spot ETF is quite promising, but there is a level of uncertainty lurking around its approval. Apparently, the SEC gave a green light on the bitcoin futures ETF but has turned down bids for the spot ETF. This seems more like discrimination, but the SEC claims a heavy risk is associated with the spot ETF due to potential fraud and manipulation in the bitcoin market as well as volatility in the bitcoin price.
The commission has rejected a few bids because they say there hasn’t been sufficient provision by Grayscale to address risks associated with a trading spot ETF. The premises for SEC concerns as reported by CoinDesk are:
- Wash trading
- Prominent individuals influencing bitcoin price
- Hacking and malicious control of trading platforms and the Bitcoin…
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