The recent victory secured by Grayscale over the US Securities and Exchange Commission has increased the likelihood that a spot Bitcoin exchange-traded fund (ETF) will be approved pretty soon.
Analysts at Bloomberg believe we could see such approval by the end of 2023. In this article, you will discover more about this.
Bloomberg Might Know the Answer
Bloomberg senior ETF analyst, Eric Balchunas, recently shared a post on X (Twitter) claiming that the possibilities of The SEC approving a Bitcoin ETF have increased from 65% to 75%. He claimed this change was a result of the unanimous ruling of the United States Court of Appeals Circuit.
Lot of people were asking yesterday. Eric and I have moved to 75% for 2023 launch of a spot #Bitcoin ETF and we think it’s almost a done deal that we will have one launched by the end of 2024. https://t.co/nO1gtSQzH1
— James Seyffart (@JSeyff) August 30, 2023
Interestingly, one of the analysts, Jeff Seyffart, believes “it’s almost a done deal that we will have one launched by the end of 2024.” Balchunas, another analyst, held similar. He noted that, in light of the SEC’s recent legal and public relations setbacks, an SEC rejection would be “politically untenable.”
Last week, a federal appeals court deemed the SEC’s justifications for opposing the digital asset firm’s application “unlawful”. And that has played a significant role in the shift in public opinion. The US regulator has continuously rejected all applications, citing fears for investor protection.
Even if SEC wants to deny all of these applications. We think they would have a very hard time finding a way to deny @hashdex's unique and novel approach for spot Bitcoin exposure in $DEFI. Worries about spot manipulation & settlement should be assuaged. Increasing '24 odds pic.twitter.com/b1HHbbHeEq
— James Seyffart (@JSeyff) August 30, 2023
However, the court addressed the SEC’s inconsistent handling of spot Bitcoin ETFs and comparable futures-based funds. The SEC has seen a wave of spot Bitcoin ETF applications, including those from Wall Street heavyweights like BlackRock and Fidelity.
What Does a Former SEC Chair Have to Say?
Interestingly, different political and financial experts have expressed their views about the SEC’s refusal to approve a spot Bitcoin ETF including the former commission chair Jay Clayton. Clayton expressed positive hopes that such an approval is bound to happen.
During a recent interview with CNBC, Clayton remarked that “an approval is inevitable,” adding that “the dichotomy between a futures product and cash product can’t go on forever.”
Additionally, Clayton claimed that the interest of financial institutions in spot Bitcoin investment vehicles marks a change in the way that ordinary investors can get exposure to cryptocurrencies.
Meanwhile, the SEC extended the review period for applications for spot BTC exchange-traded funds (ETFs) from BlackRock, WisdomTree, VanEck, Invesco Galaxy, Bitwise, Valkyrie, and Fidelity on August 31.
So, the commission will have an additional 45 days to approve, reject, or postpone the ETF applications submitted by these seven companies.
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