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Coinbase: SEC approval of Bitcoin (BTC) ETFs is imminent

Wed 28 Jul 2021 ▪ 16h55 ▪ 3 min read — by Violaine Silverstein

Coinbase is optimistic about the prospect of US approval of Bitcoin-based exchange-traded funds (ETFs) either this year or 2022. The exchange said this in an industry review of the first half of 2021 for institutional investors.

BTC ETF: a question of when

“Many major ETF issuers believe the U.S. Securities and Exchange Commission (SEC) may give the go-ahead to crypto exchange-traded funds in 2021 or 2022. There are a number of factors driving this optimism,” the report reads.

The report points out that the regulator has rejected at least a dozen applications to list Bitcoin ETFs. However, in their view, a number of favourable factors have emerged since then for the Commission to reconsider giving the green light to this investment vehicle:

– the new SEC leadership, led by Gary Gensler, who is considered to be in favour of the cryptocurrency market;

– the increased presence of institutional players in the industry;

– the growth of the Bitcoin futures market to the benchmark levels established by the regulator;

– the successful debut of a Bitcoin ETF in Canada.

Landmark for industry

The company stressed that the approval of exchange-traded BTC funds would be a “landmark moment for the industry”, unlocking an influx of new funds from previously inaccessible channels such as broker-dealers or tax-advantaged accounts.

Coinbase also expects ETF issuers to take advantage of its storage, stacking and trading services, which will generate additional revenue for the company.

Earlier this year SEC Commissioner Hester Pearce called the agency’s requirements for Bitcoin ETF issuers excessive and lamented that the US lags behind other countries in regulating such products.

Coinbase expects BTC ETFs to be recognised in the near future, in 2021 or 2022 at the latest. A number of factors are contributing to this step, especially considering the current state of crypto trading environment. Recognition of these Bitcoin-based exchange-traded funds is only a matter of time, which is a positive sign for the entire crypto community.

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Violaine Silverstein avatar
Violaine Silverstein

Quand j’ai commencé dans les cryptos il y a 3 ans, il y avait plus de 95% d’hommes et encore très peu de femmes, bon ça n'a toujours pas beaucoup changé, mais les choses bougent et je suis fière de representer les femmes dans ce milieu très technique qui est passionnant et plein d'avenir.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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