©Reuters
The dialogue between the United States Securities and Exchange Commission (SEC) and financial companies seeking to introduce bitcoin exchange-traded funds (ETFs) has progressed to focus on important technical aspects. This progression indicates that the SEC could approve these financial products, as reported by Reuters.
Current discussions focus on the specifics of holding bitcoins for clients, the processes for creating and redeeming fund units and the necessary information regarding risks for investors. The approval of a Bitcoin ETF could allow investors to invest in bitcoin through the established stock market. Analysts predict demand could reach $3 billion soon after launch.
Thirteen companies, including Grayscale Investments, BlackRock (NYSE:), Invesco and ARK Investments, are awaiting a decision on their ETF proposals.
The SEC, which has historically been cautious about approving Bitcoin ETFs out of concern to protect investors, began extensive discussions following a court ruling in August. The court found that the SEC’s earlier denial of Grayscale’s ETF proposal was not justified.
The SEC is expected to announce its final verdict on ARK’s application, the first to be considered, by January 10. The progress of the discussions suggests that the SEC could give its approval early next year.
These negotiations took place as the value of bitcoin increased significantly, reaching its highest level in 20 months.
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