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The US Securities and Exchange Commission (SEC) is set to make a decision on spot Exchange-Traded Fund (ETF) applications filed by BlackRock (NYSE:) and other financial institutions. The verdict, which is expected within a 240-day window from today, Friday, has the potential to significantly impact the $7 trillion capital market and expand investor access.
The recent filings have named Coinbase (NASDAQ:) as a surveillance partner to address regulatory concerns, resulting in considerable bitcoin price movement. The SEC’s decision will be influenced by various factors, including the outcome of the Grayscale Vs. SEC lawsuit and the performance of existing ETFs.
In a related development earlier this week, the deadline for the SEC to appeal against the Grayscale verdict was approaching, as reported by Coindesk. This appeal deadline could further influence the approval of bitcoin ETFs in the United States.
While Europe and Canada already have operational Bitcoin ETFs, their approval in the US would mark a significant milestone for cryptocurrency adoption in the country. However, risks remain due to events such as FTX’s collapse and the failure of the Terra-Luna stablecoins.
According to a research report by Sanford C. Bernstein, if approved, ETFs could account for up to 10% of Bitcoin’s market value. This projection underscores the potential impact that the approval of Bitcoin ETFs could have on the cryptocurrency market.
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