Will Bidens Executive Order accelerate the approval of Spot Bitcoin ETF?

Will Bidens Executive Order accelerate the approval of Spot Bitcoin ETF?

After President Biden introduced his first executive regulation on cryptocurrency, US assets administrators praise the development as an optimistic indicator for the long-awaited spot bitcoin ETF.

The schedule for the approval of such a product by the Securities and Exchange Commission is unclear.

The Command focuses on cryptopolitics in terms of consumer protection, financial stability, risk reduction, the financial management of the country, financial inclusion and responsible innovation.

Although industry observers described the order as an important step in the political decision -making process, some said that block works could take a specific legislation.

According to Lara Crigger, editor-in-chief of ETF Trends and ETF Database, the establishment of a uniform frame that prescribes how the Crypto government will regulate is reducing the bureaucratic effort and helping potential Bitcoin ETF emitters to familiarize themselves with the new traffic rules.

"If you are the US government and want to do something as groundbreaking, such as approving the first spot bitcoin ETF in the USA, you have to create this framework before you can even consider it," said Crigger.

ETP emitters agree

Craig Salm, Chief Legal Officer at Grayscale Investments, said that the approval of a spot bitcoin ETF by the supervisory authorities is a question of when, not the ob.

The company tries to convert its Grayscale Bitcoin Trust (GBTC) into an ETF. There are public comments from investors - as well as managers from crypto companies such as Coinbase and Blockfi - arrived, most of whom support the step. The SEC is expected to decide on the conversion by July after a 240-day review period.

"The executive order will enable the SEC to carry out its own studies and have its own results, which in my opinion will also lead to supporting a spot bitcoin ETF because the markets are ready," said Salm.

A spokesman for the SEC did not immediately answer a request for comment.

Ryan Louvar, Chief Legal Officer of Wisdomtree, said it was not typical to see a implementing regulations that include so many government agencies and follow a global approach.

But financial supervisory authorities such as the SEC, Commodity Futures Trading Commission (CFTC) and the Office of the Compotroller of the Currency (OCC) are not particularly highlighted in the implementing regulations. Rather, it is based on the coordination and input of other heads of the agency such as the Foreign Minister, the Minister of Finance and the Attorney General.

"To the extent that the order and coordination between federal authorities calls for further deepening the market for digital assets, the concerns of the SEC are part of it in terms of potential fraud and manipulation," said Louvar. "If this research, evaluation and coordination can contribute to clearing up these concerns ... I think that may help to stimulate or at least increase the potential for admission."

The company changed its ETF application, which would invest directly in Bitcoin in December, a week after the SEC rejected its original proposal. Wisdomtree already offers ETPs in Europe that keep crypto directly.

Also abroad offers Global X such products that launched their first physically secured crypto offers on Thursday. The Bitcoin and Ether ETPs (marketed products) are now being traded in Germany, and the company continues to pursue a US bitcoin ETF that it first submitted to the SEC in July.

Pedro Palandrani, research director at Global X, said the implementation regulations require the SEC to create a timetable for risk reduction and at the same time take up upgrades of financial technology, but this does not affect the views of the agency at short notice.

"A selective ETF approval or its absence really depends on the approach of the SEC to space, and although it is not easy to draw a picture of how this will develop over time, the mandate focuses on promoting a work plan for its possible acceptance," said Palandrani.

HANY Rashwan, CEO of the Swiss ETP emittent 21shares, described the implementing regulations as a "significant step". As the world's largest ETP provider, the company has 28 products that are traded throughout Europe and submitted the introduction of a Bitcoin ETF in the USA at ARK Invest last year.

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the post will Bidens Executive Order speed up the approval of Spot Bitcoin ETF? is not a financial advice.