Galaxy Digital today submitted Form S-1 with the U.S. Securities and Exchange Commission (SEC) for consideration of a Bitcoin exchange-traded fund (ETF). The filing is used by companies that plan on going public to register their securities.
And while such products would signal the top-down acceptance of cryptocurrency and help legitimize the space, they have not, so far, been accepted or legally offered in the US.
Is the SEC soon to approve a Bitcoin ETF?
However, Bitcoin ETF hopefuls in the US have seen nothing but rejection. Over the years, VanEck, SolidX, Grayscale, ProShares, Direxion, GraniteShares, Bitwise, Wilshire Phoenix, and Realty Shares ETF Trusts have all applied and been rejected by the SEC.
Now, with Galaxy Digital joining the hunt, can we expect an imminent change of heart from the SEC?
Todd Rosenbluth, the head of ETF and Mutual Fund Research at CFRA Research, thinks not. According to Rosenbluth, approval could be up to two years away.
“We’ve got a number of firms that have entered and we think we’re likely to see one in the coming year or two, but we don’t have a firm time frame as to when the answer would be yes.”
Novogratz says crypto is getting too big to ignore
People often say regulators are conflicted as far as endorsing cryptocurrency is concerned. And that hypothesis carries weight based on the SEC’s past actions, including the rejection of several Bitcoin ETF applications.
“The more people involved in this space, the more big firms, if it’s Tesla, or MicroStrategy, or Goldman, or Morgan Stanley, the more wealthy individuals – the harder it is politically to say ‘hey we don’t like this anymore…’”
With that, and the shoo-in appointment of “crypto-friendly” Gary Gensler as SEC Chair, is mainstream acceptance on the way?
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