Spot bitcoin (BTC) exchange-traded funds (ETFs) could start to garner some approvals by mid-2023 given a proposed U.S. Securities and Exchange Commission (SEC) rule change that redefines exchanges, Bloomberg Intelligence analysts James Seyffart and Eric Balchunas wrote in a post to clients on Thursday.
- “Expanding the definition of an exchange could eliminate the agency’s primary objection to the products by bringing cryptocurrency platforms under the SEC’s regulatory framework,” Seyffart and Balchunas wrote.
- “Once crypto exchanges are compliant, the SEC’s primary reason for denying spot Bitcoin ETFs would no longer be valid, likely clearing the way for approval,” they added.
- The two expect the change to be finalized sometime between November of this year and May of 2023.
- Meanwhile, the SEC has continued to deny or extend reviews on all the applications for U.S. spot bitcoin ETFs that have been submitted to it, citing concerns about protecting investors.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.