Bitrabo Editorial
David Bailey, a prominent figure in the cryptocurrency industry, has suggested that the US Securities and Exchange Commission (SEC) may soon approve BlackRock’s Bitcoin (BTC) Exchange-Traded Fund (ETF), despite previous rejections of similar proposals by other firms.
Bailey, who is the CEO of BTC Inc. and a board member at the University of Alabama, believes that BlackRock’s entry into the Bitcoin ETF market could help sway regulatory acceptance in favor of the cryptocurrency.
David Bailey’s comments are based on BlackRock’s filing with the SEC on June 15th, which hints at the potential approval of a BTC ETF.
If approved, the ETF would allow investors to gain exposure to Bitcoin without directly owning the cryptocurrency, which could have a significant impact on BTC’s price.
Could BlackRock’s Bitcoin ETF Gain Approval In Record Time?
The SEC’s approval process for ETFs is typically long and complex. The agency evaluates proposals to ensure compliance with laws and regulations and to safeguard the interests of investors.
Historically, the SEC has taken several months to review and approve Bitcoin ETF proposals, primarily due to concerns about fraud and market manipulation in the cryptocurrency market.
Past Bitcoin ETF proposals have been rejected by the SEC due to worries about market volatility, liquidity, and the potential for fraud.
However, recent developments such as increased institutional adoption of Bitcoin have led experts to speculate that the SEC may be more open to approving a Bitcoin ETF in the near future.
According to Bailey, the involvement of BlackRock, one of the world’s largest asset managers, in the proposed Bitcoin ETF could be a game changer. He suggests that BlackRock’s reputation and influence in the financial industry could expedite regulatory approval in a matter of “days to weeks”.
It is important to note that the SEC has not provided an official timeline for approving BlackRock’s Bitcoin ETF or any other pending ETF proposals. The agency’s approval process is generally opaque, and it can take months or even years for a proposal to be approved, if at all.
Featured image from Unsplash, chart from TradingView.com