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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.
