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September 26, 2023

Wall Street Giants Seek Approval for Bitcoin ETFs Amidst Crypto Industry Turmoil

Wall Street giants, such as Goldman Sachs, Fidelity, and VanEck, are pushing ahead with their Bitcoin Exchange Traded Fund (ETF) applications even as the cryptocurrency industry is facing major regulatory and market turmoil. The firms are hoping to get approval from the U.S. Securities and Exchange Commission (SEC) to launch the first ever Bitcoin ETF products on the market. Despite the volatility of the crypto market, the firms believe that the time is right to bring the ETFs to the market. The appeal of Bitcoin ETFs is that they would enable investors to gain exposure to the digital asset without having to buy and hold it. The ETFs would give investors the ability to easily hold a fraction of a bitcoin, and to invest through traditional financial platforms like stock exchanges. The firms will face a difficult task gaining approval from the SEC as the regulator has been quite vocal about its concerns with the lack of regulation in the cryptocurrency space. It has on multiple occasions rejected applications for a Bitcoin ETF due to the uncertain nature of the cryptocurrency industry. In addition to the regulatory concerns, the firms are also facing opposition from some of the large financial institutions which are not comfortable with the idea of investing in an unregulated asset class. This has meant that approval of a Bitcoin ETF could take some time. However, the Wall Street firms are not giving up, and their applications are continuing to progress. The focus now is on convincing the SEC that the industry is more mature and that the infrastructure is now in place to support a regulated ETF product. If the firms are successful, the result could be a major milestone for the industry, and bring much needed institutional investment into the market.