What the SEC’s Bitcoin ETF Approval Means for the Industry

<p>There
have been some new developments in the long-running quest to have a Bitcoin
Exchange Traded Fund (ETF) approved by the United States Securities and
Exchange Commission (SEC). Coinbase, a top crypto exchange that has a famously
tumultuous relationship with the SEC, has signed on
to be the Surveillance Sharing Agreement(SSA) counterpart for
the Chicago Board Options Exchange (CBOE) ETF applications. </p><p>This
move brings the industry’s dream of having an ETF approved one step closer to
reality and this was reflected in the price of Coinbase’s stock, which shot up.
But what would this approval, if it happens, mean for the industry? </p><p>First,
it would mean an inflow of investments. It’s worth noting that there are
already ways to invest in crypto. After all, crypto exchanges already exist.
But a Bitcoin ETF will be a major way to secure institutional investment for
the industry. </p><p>Traditional
stocks and top investment vehicles already have ETFs that they are attached to
and this drives billions of dollars into their respective industries each year.
If the crypto industry can do the same, it could potentially reap the same
benefits and everyone from individual users to companies in the space would be
better off. </p><p>This
comes down to more visibility. As much as the crypto space has made immense
progress in the last decade, a lot of the money is still in the hands of
mainstream investors. And mainstream investors are more likely to know about
ETFs traded on a major exchange than the latest altcoin. </p><p>This
move could also mean more price stability for Bitcoin and other tokens. The
industry is infamous for its volatility but increased mainstream visibility and
better regulation could lead to more price stability. </p><p>This,
experts say, is even more true in the case of spot ETFs. Price stability for
Bitcoin can be very beneficial not only for those who trade speculatively but
also for those who use crypto for more ‘domestic’ purposes such as those who
use <a href="https://www.techopedia.com/cryptocurrency/best-bitcoin-gambling-sites" target="_blank" rel="follow">crypto gambling sites</a>, store their savings in
crypto, use crypto to make everyday payments, and much more.</p><p>As
the crypto industry matures, more consideration will need to be given to those
who use crypto for non-speculative reasons and an ETF could be a step in the
right direction. The ETF could also help mitigate the long-running contention
between the SEC and the industry.</p><p>From<a href="https://www.financemagnates.com/cryptocurrency/news/illegal-icos-paid-a-quarter-of-secs-4-68-billion-crackdown/" target="_blank" rel="follow"> investigations during the ICO craze</a> to the
endless lawsuits that the SEC has filed against crypto businesses, the two have
been at odds for a while. But should the SEC approve the Bitcoin ETF, it will
not only mean the fulfilment of a goal that has been many years in the making.
It could also mark the start of a better relationship between the SEC and the
industry even as the biggest crypto in the world comes under better and more
thorough regulation. </p>

This article was written by FL Contributors at www.forexlive.com.