The much-anticipated approval of the iShares Bitcoin ETF may soon become a reality. A tweet from Bloomberg analyst Eric Balchunas cited Reuters as indicating that the US Securities and Exchange Commission (SEC) is nearing a green light for the financial product. While still awaiting official confirmation, this news has already stirred the cryptocurrency landscape, potentially paving the way for increased institutional investment in Bitcoin.

SEC to Approve First Spot Bitcoin ETF

For years, the idea of a Bitcoin ETF has captured the imagination and interest of investors. Exchange-traded funds (ETFs) allow individuals to invest in an asset without owning it directly. In this context, the iShares Bitcoin ETF would give investors a convenient, regulated way to gain exposure to Bitcoin’s price changes without the need to own the cryptocurrency.

The original tip-off about the SEC’s pending approval came from Benzinga, a financial news outlet. Balchunas later corroborated this by stating that it was also a headline on the Reuters terminal, thereby adding more weight to the claim. However, while Reuters is a trusted source, the SEC has yet to make an official announcement.

I just wonder if this is the news from Friday that Reuters broke that was SEC no going to appeal Grayscale being converted into approval news. Again, trying to 100% confirm this..

— Eric Balchunas (@EricBalchunas) October 16, 2023

The approval of this ETF could represent a watershed moment for institutional investors, who currently face various obstacles in investing in cryptocurrencies. Regulatory challenges and custody issues have historically deterred this sector. The ETF could provide a safer, more streamlined avenue for these investors, potentially stabilizing the market and boosting liquidity.

However, the cryptocurrency market is infamous for its volatility, often driven by rumors and speculative news. As such, the prudent approach would be to wait for an official announcement from the SEC.

Bitcoin Price Goes Up

In response to the unconfirmed news, Bitcoin’s price rose by over 10% on Monday afternoon, breaking the $28,000 level.

“The iShares Bitcoin spot ETF will be approved by US regulators, according to unconfirmed SEC filings. Bitcoin is gaining more than 10% following this news,” commented XTB in a note.

This article was written by Damian Chmiel at www.financemagnates.com.CryptoCurrency, NewsRead More

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