The price of Bitcoin today (^BTCUSD) rose more than +4% to a 3-1/4 month high on speculation the U.S. Securities and Exchange Commission (SEC) may be close to approving the first U.S. exchange-traded-funds (ETFs) investing directly into spot Bitcoin. Asset managers BlackRock and Fidelity Investment are among the fund managers in the race to offer a spot Bitcoin ETF in the U.S., which could spark new inflows into the cryptocurrency.
The SEC has so far resisted approving spot Bitcoin ETFs, citing risks such as fraud and market manipulation. However, the SEC recently indicated that it won’t appeal an August court ruling that may pave the way for the $18.4 billion Grayscale Bitcoin Trust to convert to an ETF. Bloomberg Intelligence said, “approval of a spot Bitcoin ETF looks inevitable” and that several funds are likely to be given the green light, although the exact timing remains uncertain.
