Assessing the Likelihood of SEC Approval for a Spot Bitcoin ETF

The Uncertainty of Bitcoin ETF Approval

The approval of Bitcoin Exchange-Traded Funds (ETFs) has caused much uncertainty in the crypto community. John Reed Stark and Cathie Wood offer differing viewpoints on the likelihood of regulatory approval from the SEC.

John Reed Stark’s Viewpoint

Stark suggests that a Republican Presidency in 2024 could increase the chances of a spot Bitcoin ETF gaining approval.
He refers to a letter submitted by Better Markets, which raises concerns about the existing state of spot Bitcoin markets, citing manipulation and wash trading as problems.
Better Markets worries that a spot Bitcoin ETP could be easily manipulated by criminals due to the control of the market by a small group of influential individuals.
Stark also notes that decisions about crypto rules at the SEC are often influenced by politics, and the current rules may be too strict.

Cathie Wood’s Optimistic Outlook

Cathie Wood, CEO of Ark Invest, holds a more optimistic view on the approval of a spot Bitcoin ETF.
She believes that the SEC should focus on catching fraud and be open to allowing Bitcoin ETFs.
If Hester Pierce becomes SEC chair, efforts to control cryptocurrency might ease.
Despite the applications from big players like BlackRock and Fidelity, Wood expects the SEC to reject pending Bitcoin ETF requests.

Hot Take: The Future of Bitcoin ETF Approval

The approval of a spot Bitcoin ETF remains uncertain. While Stark suggests that a Republican Presidency and a reevaluation of the current rules could increase the chances of approval, Wood remains skeptical. The SEC’s decision will have a significant impact on the crypto market, and only time will tell if a Bitcoin ETF will be approved.