Key facts:
After a long fight, the SEC would allow the launch of the bitcoin cash ETF in 2023.
This situation would directly impact the price of bitcoin as it has happened before.
There is a high probability that in 2023 the first bitcoin spot exchange-traded fund (BTC spot ETF) will be launched in the United States. A situation that would fully impact the price of cryptocurrency and mark a historic milestone for the industry that has been looking for this for more than eight years.
The news was released by ETF analysts Eric Balchunas and James Seyffart, who they said that the event could occur in the early summer of 2023 in the United States. That is to say, from June of next year, what would cause a possible increase in the price of bitcoin in case it has a large adoption among institutional investors.
The reason why they think it will happen is because the SEC (United States Securities and Exchange Commission) has proposed to expand the definition of “exchange” or “exchange”. This rule change would amend the law to add to platforms “that make any type of value available for trade,” which would include cryptocurrencies.
This change in the law would imply a discussion that could end between November 2022 and May 2023, analysts said. Since then, bitcoin spot ETFs could be a reality in the US, something the SEC has always rejected due to regulatory complications.
Analysts said, “once crypto exchanges become compliant, the SEC’s primary reason for denying bitcoin spot ETFs would no longer be valid, likely clearing the way for approval.”
The fight to launch a bitcoin spot ETF could end in 2023
The SEC has prevented the launch of these assets for eight years even after approving futures-based bitcoin ETFs in 2021, as CriptoNoticias has reported. The reason is that they are supposedly not safe enough for investors. Although different figures have said that in that case neither would those based on futures be.
This was expressed, for example, by Congressmen Tom Emmer and Darren Soto, who declared at the end of 2021 that both types of funds pose the same level of risk, with which both should be approved if one is.
Precisely for that, Enabling bitcoin spot ETFs in the United States would be a historic milestone for the investment and cryptocurrency industry. A widely anticipated event that could impact the price of the cryptocurrency due to the possibility of more institutional money flowing into the ecosystem.
To understand the difference between both products and the importance of cash funds, it must be taken into account that the latter are governed by the present value of BTC in the exchanges (of the price per day), while the others are governed by bitcoin futures contracts. . That is, in the derivatives market.
Other countries, such as Canada, Germany, Brazil, and Singapore, do have bitcoin spot ETFs. That is why it is strange to many industry players why the United States has not allowed them so far, despite having enabled futures-based ones.
Gabor Gurbacs, the director of VanEck, a bitcoin exchange-traded fund, express via Twitter in mid-March 2022: “The reason those countries have bitcoin spot ETFs is because those places have common sense, democratic regulatory processes, whereas we in America have emperors with unbridled power and climate agendas.” and heavy banking.
Either way, it seems finally bitcoin spot funds could be allowed in 2023 on US exchangesaccording to analysts Eric Balchunas and James Seyffart.