As of now, exchange-traded funds are no longer a new thing in the cryptocurrency industry as well as the stock exchange markets. It has been several months since the first exchange-traded fund (ETF) for cryptocurrencies was launched.
The first-ever ETFs were launched in Canada and since then, the ETF launches have been unstoppable. Almost every month, several ETFs are being launched throughout the world.
Similar to other countries, the cryptocurrency and fund managers were hoping to launch ETFs in the United States as well. They had hoped that the US Securities and Exchange Commission (SEC) would not take much time to approve them.
However, as the government of the United States changed in January of 2021, the US SEC had too much on its plate that it had to deal with. Therefore, the exchange-traded fund approvals were pending approvals.
Even now, there are several exchange-traded funds that are waiting to be approved so they can be launched through the US Stock Exchange markets. Just recently, the US SEC had approved a few fund managers, so they were able to launch their ETFs.
However, there are still so many ETF applications that are still waiting to be approved by the US SEC. After May of 2021, the situation surrounding ETFs had changed because the entire cryptocurrency industry had taken a huge drop.
As a result, many fund managers and cryptocurrency-related firms wanting to launch ETFs had withdrawn their requests. At that time, they were not seeing much benefit or usage in launching and offering ETFs to the investors.
As the cryptocurrency industry has again made a comeback in August, and it has picked up the pace in October, the fund managers are back with their ETF requests.
At one point, the US SEC had a breather that the fund managers were not stressing or putting any pressure on the approval of the ETF requests. Now, the fund managers are determined to get the ETFs approved at the earliest.
Among the majority of the ETFs currently sitting at the US SEC for approval, most of the ETF applications are for Bitcoin and Ether. This is mainly because the prices for Bitcoin and ETH are at their all-time highs. By the looks of it, the prices for both currencies are going to surge again.
James Seyffart, the intelligence analyst at Bloomberg has shed some light on the matter from his end. He has provided details on how many ETF requests are currently waiting for approval at the US SEC.
He has revealed that as of now, over 40 exchange-traded funds for cryptocurrencies await approval from the US SEC. It is being hoped that all of these requests will be catered to or responded to by the first quarter of 2022.