The U.S. Securities and Exchange Commission (SEC) is nearing approval for several spot cryptocurrency ETF funds, with a new framework that helps shorten the review process.
The SEC is building listing standards and plans to reduce the review time for cryptocurrency ETF funds, prioritizing Bitcoin, Ethereum, and other mixed assets in 2024.
MAIN CONTENT
The SEC proceeds with approval in phases: Bitcoin, Ethereum, then hybrid funds.
The new framework simplifies procedures, shortening the ETF approval time.
High chances for ETFs tracking SOL, XRP, LTC, along with many other altcoins this year.
How is the SEC moving towards approving cryptocurrency ETFs?
The SEC confirms that the approval of spot cryptocurrency ETF funds is just a matter of time, reflecting a positive change in perspective towards cryptocurrency.
Gregory King, founder of Osprey Funds, shared at the WOLF Trading event in July 2024 that, "The SEC now supports cryptocurrency but operates based on strict standards, avoiding any arbitrary actions." This marks a significant advance in this agency's approach to cryptocurrency products, creating trust for investors and ETF fund developers.
"The SEC's attitude has clearly shifted from being cautious to supportive with controls regarding cryptocurrency ETFs to balance regulation and innovation."
Gregory King, Founder of Osprey Funds, July 2024
How does the SEC's new framework affect the ETF approval process?
According to reports from industry sources, the SEC is designing a standard framework aimed at significantly shortening the review time for cryptocurrency ETF listing applications.
New points include applying processes similar to traditional ETFs and minimizing complex requirements that have previously caused delays. This will provide a more transparent and streamlined procedure, facilitating institutional and investor participation in the cryptocurrency market.
Which cryptocurrencies are likely to have their ETFs approved by the SEC in 2024?
Analysts predict a high probability that the SEC will approve ETFs tracking Bitcoin and Ethereum, starting with a new hybrid fund and then moving on to popular altcoins like SOL, XRP, LTC.
Eric Balchunas, ETF analyst at Bloomberg, stated, "The probability of the SEC approving ETFs for SOL, XRP, and LTC is up to 95%, while projects like Dogecoin, Cardano, and Polkadot also have about a 90% chance of being approved." This opens up significant opportunities for investors to diversify their portfolios through legitimate ETF products.
"The approval of this series of ETFs will mark a turning point in promoting the development and integration of cryptocurrency into traditional financial markets."
Eric Balchunas, ETF analyst, Bloomberg, June 2024
How does this change impact exchanges and investors?
Exchanges are pushing the SEC to establish new standards, helping to reduce the complexity of listing ETFs. James Seyffart, an ETF analyst for Bloomberg Industry Research, noted that the legal framework will be announced by the end of July 2024 and will take effect from September-October 2024. This is expected to open the "floodgates" for many ETFs tracking new assets.
Investors will benefit from transparency and safety when participating in cryptocurrency ETF funds, while minimizing legal and technical risks.
A real-world example of the recent approval process for cryptocurrency funds.
In June 2024, the SEC temporarily approved a hybrid cryptocurrency fund from a well-known group, but is currently reviewing technical adjustments before the official approval. This demonstrates the SEC's cautious and methodical approach, gradually refining policies to support while still managing risk.
Summary table of ETF approval probabilities for cryptocurrencies according to experts.
Cryptocurrency Approval Probability for ETF (%) Solana (SOL) 95 XRP 95 Litecoin (LTC) 95 Dogecoin (DOGE) 90 Cardano (ADA) 90 Polkadot (DOT) 90
Frequently Asked Questions
What is the SEC and what is its role in cryptocurrency?
The SEC is the U.S. Securities and Exchange Commission, which evaluates and approves financial products such as ETFs to ensure transparency and safety for investors.What is a spot cryptocurrency ETF?
It is an investment fund that directly holds the underlying cryptocurrency assets, allowing investors to access the assets without needing to purchase them directly.What impact does the SEC's new framework have?
The framework helps standardize, shorten the approval process, increase transparency, and reduce risks for fund issuers and investors.Why are cryptocurrency ETFs expected to grow?
They facilitate safe, legal investments, meeting the increasing demand from traditional financial markets.What sources should be monitored for updates on cryptocurrency ETF approvals?
It is advisable to refer to Bloomberg reports, ETF experts, and official SEC announcements for accurate and timely information.
Source: https://tintucbitcoin.com/etf-tien-so-sec-rut-ngan-phe-duyet/
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