The U.S. Securities and Exchange Commission (SEC) has opened a brief approval window for applicants hoping to launch a spot Bitcoin exchange-traded fund (ETF). According to industry sources, the chance of approval is estimated to be as high as 90%.
To be approved, the applicants will have to meet certain requirements such as providing good safety and compliance, adequate liquidation, Wallet security, reliable pricing, anti-money laundering protocols, and other associated safeguards.
If successful, the launch of the ETF could signify a major step forward in the mainstream adoption of cryptocurrencies as a financial asset.
Experts believe that if approved, the ETF could lead to greater liquidity, spur institutional investment in Bitcoin, and pave the way for it to become an accepted asset class. It could also bolster adoption of other cryptocurrencies too.
The 90% chance of approval has caused a stir in the cryptocurrency industry, and investors are eager to get in early to capitalize on the potential gains. So far, the frontrunners in the race to secure the first spot Bitcoin ETF approval are firms such as VanEck, Fidelity, WisdomTree, and NYDIG.