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Bitcoin Spot ETF Progress: SEC Initiates Public Consultation Process, Enters Review Phase

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Bitcoin Spot ETF Progress: SEC Initiates Public Consultation Process, Enters Review Phase

A Bitcoin spot ETF has currently initiated the public consultation process and is about to enter the review process. However, due to the potential for the review process to be delayed for more than half a year, enthusiasm in the cryptocurrency space for the approval of the ETF may temporarily wane.

Six Bitcoin Spot ETFs Enter Review Process

According to CoinDesk, the U.S. Securities and Exchange Commission (SEC) initiated a public consultation process for Bitcoin spot ETFs last week, and this week will begin reviewing the listing applications for six Bitcoin spot ETFs.

The initial review period is 45 days, but the SEC can extend it for up to 240 days. The six ETFs include:

The Ark 21Shares Bitcoin ETF has entered the public consultation process, but the SEC has not yet accepted the application.

A spokesperson for Valkyrie told CoinDesk that the Valkyrie Bitcoin spot ETF has not been published in the Federal Register yet, but the SEC accepted the application on July 17.

Bitcoin Spot ETF: Divergent Views

Traditional financial institutions generally have a negative view of Bitcoin spot ETFs. A previous research report by JPMorgan noted that while the likelihood of the SEC approving a Bitcoin spot ETF has increased, even if approved, it would not bring significant changes to the market.

They emphasized that similar ETFs have been present in Canada and Europe for some time, but Bitcoin spot ETFs have not successfully attracted large investors' interest.

Review Report: JPMorgan: Even if SEC Approves Bitcoin Spot ETF, Impact on Cryptocurrency Market Remains Limited

Crypto industry players, on the other hand, are extremely optimistic about this development, although some in the crypto community believe it may be a way for traditional financial institutions to take over the crypto space.

When Gary Gensler recently attended the National Press Club in Washington, D.C., he declined to comment on Bitcoin spot ETFs.