US Bitcoin ETF Still Up in the Air Amid North-South Clash

With a north-south sandwich, when the U.S. will be able to launch a bitcoin ETF has become the focus of market attention.

On June 24, blockchain investment firm QR Capital’s bitcoin exchange-traded fund (ETF) began trading on the Brazilian stock exchange.

This comes on the heels of the Brazilian Securities and Exchange Commission approving QR Capital’s BTC ETF to trade on the B3 exchange in Sao Paulo under the symbol QBTC11 in March. Brazil is also the second country in the Americas to approve a bitcoin ETF.

On the other side of the Americas, in Canada, three bitcoin ETFs and three ethereum ETFs are already trading online. Currently, Purpose Investment has launched its first bitcoin ETF fund with 2,114.08 BTC under management, or about $851.68 million.

In fact, the U.S., which is seen as a cryptocurrency soil in the Americas, is also mulling the listing of such ETFs.

It is understood that giants such as Morgan Stanley, Fidelity, SkyBridge, Van Eck, Bitwise and Invesco are all applying for US bitcoin ETFs.

Asset management giant VanEck also recently filed a preliminary prospectus to launch a mutual fund called the Bitcoin Strategy Fund, which invests in bitcoin futures. The fund invests in “certain” bitcoin futures through its Cayman Islands-based subsidiary and will not be influenced by the spot price of bitcoin. The fund may also invest some of its remaining assets in U.S. Treasuries, money market funds, municipal bonds and other investment vehicles.

In addition, State Street’s chief financial officer Eric Aboaf recently said that State Street plans to enter the cryptocurrency ETF back office services space, which will be one of the key business directions of the bank’s new “State Street Digital” division. At the moment, U.S. securities regulators are being extra cautious and have yet to approve a cryptocurrency ETF fund, but State Street believes the SEC will eventually release such products and that regulatory hurdles for blockchain and digital assets will eventually be cleared.

With one south and one north sandwiched between them, when the U.S. will be able to launch a bitcoin ETF becomes the focus of market attention. Along with the listing of Coinbase, the largest cryptocurrency exchange in the U.S., and the gradual leaning toward regulating cryptocurrencies at the regulatory level, there is a growing belief in the circles that the U.S. SEC can agree to launch a bitcoin ETF.

However, in a filing on Tuesday, the SEC said it extended the Valkyrie Bitcoin ETF decision window, which had originally expired on June 26, with the SEC designating Aug. 10 as the revised date for a decision on the Valkyrie Bitcoin fund. This also follows last week’s postponement of a decision on ETF provider VanEck’s proposed bitcoin product, with the SEC making another decision on Wednesday on approving another bitcoin ETF application.

The SEC has twice in a week delayed making a decision on approving a bitcoin ETF. The regulator said it needed more time to make a decision.

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