Following years of languishing on the sidelines of the global economy, cryptocurrencies are all set to go mainstream in the US with the Securities and Exchange Commission (SEC) reportedly ready to allow Bitcoin trading on the New York Stock Exchange (NYSE). The battle for acceptance has been long and hard for Bitcoin and other cryptocurrencies, but digital assets are now taking their first real steps towards mainstream acceptance.
One of the biggest victories for the technology came earlier this year when El Salvador declared Bitcoin legal tender. Following that announcement, businesses in the country were obligated to accept Bitcoin as payment for goods and services, and Salvadorians are also able to pay taxes to the government with the world's largest cryptocurrency. The developments in El Salvador and now the impending NYSE debut are massive boosts to the global crypto community who had only recently been reeling under a crippling ban on all digital assets in China.
The first Bitcoin futures ETF is expected to debut in the US next week with the ProShares Bitcoin Strategy ETF slated to start trading on the NYSE as early as Tuesday. The SEC, which is yet to make an official comment on the matter, is said to be unlikely to block its launch. The deadline for the SEC to file its objection is midnight Monday but, according to Bloomberg, that is unlikely to happen "barring a last-minute reversal." If the launch does go through, the US will be one of the first to officially allow crypto ETFs following Canada and the EU, where regulators earlier this year approved asset manager Melanion Capital to offer a Bitcoin-tied ETF.
Bitcoin Prices Near Record Highs
The expectations of going mainstream in the world's largest economy sent Bitcoin prices soaring. Per Coindesk, the world's largest crytocurrency passed $60,000 on Friday, its highest since April 2021. The latest developments are also a huge boost for crypto enthusiasts in the country, who, only weeks ago, were worried about a possible ban on digital assets in the US. However, those fears were allayed earlier this month when SEC Chair Gary Gensler clarified that the agency does not plan to ban cryptocurrencies in the country.
While the ProShares Bitcoin ETF is expected to debut on the NYSE next week, several other prominent fund managers, including VanEck Bitcoin Trust, Invesco, Valkyrie and Galaxy Digital Funds, have also reportedly applied to launch bitcoin ETFs in the United States. Details about all the ETF proposals were not immediately available, but Bloomberg reports that the ProShares and Invesco proposals were filed under existing mutual fund rules that Gensler says offers considerable protection to investors. That assurance will likely be music to the ears of potential investors who are otherwise worried about scams and fraud related to Bitcoin and other cryptocurrencies.
Source: Bloomberg