Several Spot Crypto ETF Applications Move Closer to SEC Approval as They Enter Federal Register

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Crypto spot exchange-traded fund (ETF) proposals from various entities have now reached the Federal Register, marking a crucial milestone in the United States Securities and Exchange Commission's (SEC) application process. This advancement signals that the SEC is moving closer to deciding on the approval of spot Bitcoin ETFs.

The publication of these ETF applications in the Federal Register offers the SEC various options. The commission can accept or reject the proposals, extend the review period, or initiate public consultations to gather further input. The recent update in the Federal Register aligns with the timeline following the initial submissions of these applications back in June.

Initially, the SEC deemed the filings insufficient, leading the companies to resubmit their applications. The SEC has now been given a preliminary 45-day window, ending in early August, to arrive at a decision. However, the commission holds the discretion to extend this timeframe up to 240 days, extending until March 2024, before final acceptance or rejection of the ETF applications.

While the crypto community anticipates the SEC's decision on spot Bitcoin ETFs, the commission faces criticism over a federal court ruling concerning Ripple's XRP token, which suggested that it may not be classified as a security. 

The progress of these spot Bitcoin ETF applications in the Federal Register highlights the growing momentum of crypto ETFs in the United States. Market participants and industry experts observe this development with cautious optimism, as it may pave the way for increased institutional participation in the crypto market.

Experts believe these ETF applications stand a good chance of approval, given the rising institutional interest in Bitcoin and the demand for reliable investment vehicles. However, they also emphasise that regulatory dynamics and the outcome of the Coinbase lawsuit may prompt adjustments or iterations in the approval process.

As the SEC evaluates these pivotal ETF applications, the crypto market eagerly watches for a potential green light that could reshape investment opportunities in the US crypto space. The SEC's decisions will undoubtedly significantly impact the future of crypto ETFs and the broader adoption of digital assets in traditional finance.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash