[Bitcoin Now] Rebounds to 55 Million KRW Range... Major US Banks Apply to SEC for Bitcoin Fund

Negative Outlook Emerges on Bitcoin ETF Launch Within This Year

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Gong Byung-sun] Major cryptocurrencies rebounded to the 55 million KRW range. Attempts by large U.S. banks to launch Bitcoin funds appear to have had a positive impact. However, there are also expectations that Bitcoin exchange-traded funds (ETFs) will not receive approval from the U.S. Securities and Exchange Commission (SEC) within this year.

According to the domestic cryptocurrency exchange Upbit, as of 2:49 PM on the 20th, Bitcoin recorded 55.23 million KRW, up 0.40% compared to the previous day. Although it had fallen to 52 million KRW the day before, it surged 4.18% to surpass the 55 million KRW mark.

Major U.S. banks are aiming to launch Bitcoin funds. According to cryptocurrency specialized media CoinDesk on the 19th (local time), Wells Fargo, one of the four major U.S. banks, registered a Bitcoin fund with regulatory authorities. This fund will be sold to high-net-worth individuals and operated as a passive fund. A passive fund refers to a financial product that tracks an index rather than being actively managed by a fund manager. Wells Fargo is known to have collaborated with cryptocurrency investment firm New York Digital Investment Group (NYDIG) and U.S. asset management company FS Investments to launch the product.

U.S. giant investment bank JP Morgan is also attempting to launch a Bitcoin fund. On the 19th, JP Morgan submitted an application for a Bitcoin passive fund to the SEC. JP Morgan is also reported to have formed a partnership with NYDIG for this financial product launch.

However, the launch of Bitcoin ETFs is expected to be delayed. According to U.S. economic media CNBC on the 19th, Todd Rosenbluth, a researcher at investment research firm CFRA, said, “The likelihood of a physically-backed Bitcoin ETF being approved within this year is low,” adding, “The SEC appears to still be gathering more information regarding Bitcoin funds.”

Recently, SEC Chairman Gary Gensler stated that he would consider the launch of futures-based Bitcoin ETFs, but this is also expected to be difficult. Researcher Rosenbluth said, “Futures-based ETFs do not follow the price of the underlying asset and involve high costs, which can entail risks,” and “Approval for futures-based ETFs will also likely be postponed until next year.” Futures ETFs track futures contracts of related assets without directly acquiring the assets.

This content was produced with the assistance of AI translation services.