Bitcoin Price Rollercoaster and the Potential for a Spot ETF
The recent price movement of Bitcoin has been a wild ride, leaving many wondering about its future trajectory. After news circulated that the SEC had approved a BlackRock Spot ETF, Bitcoin surged to $30,000. However, it was soon revealed that this news was false, resulting in an immediate drop in price.
Craig Salm, the Chief Legal Officer at Grayscale Investments, believes that it’s not a matter of “if” but “when” a spot Bitcoin exchange-traded fund (ETF) will be established. Salm expressed his optimism during a recent SiriusXM radio show.
This positive outlook follows the SEC’s decision to not appeal an August court ruling that instructed them to reconsider Grayscale’s request to convert their flagship GBTC fund into a spot Bitcoin ETF. Grayscale Investments has been actively involved in discussions and efforts surrounding this development.
“The fact that we have two bills making it through committee going to the House floor is an amazing amount of progress in D.C. that we have not seen in the crypto space today,” Salm commented as reported by Blockworks.
In addition to their involvement with ETFs, Grayscale is expanding its presence in the cryptocurrency market. The Grayscale Ethereum Trust (ETHE), which currently manages $5 billion in assets under management (AUM), represents over 2% of the circulating supply of Ethereum (ETH). Furthermore, Grayscale has applied for a new Grayscale Ethereum futures ETF.
Other major players such as BlackRock, Fidelity, Bitwise, Invesco, WisdomTree, VanEck, Valkyrie, Global X, 21Shares, and Ark Invest have also entered the scene with their own proposals. The SEC is currently reviewing all of these applications.
Hot Take: The Potential for a Spot Bitcoin ETF
The recent developments surrounding the potential approval of a spot Bitcoin ETF by the SEC have generated significant excitement in the crypto space. While the initial news of BlackRock’s approval turned out to be false, industry insiders like Craig Salm remain optimistic about the eventual establishment of such an ETF.
If approved, a spot Bitcoin ETF could have a profound impact on the cryptocurrency market, providing investors with a regulated and accessible way to gain exposure to Bitcoin. It would mark a significant milestone in the mainstream adoption of cryptocurrencies and potentially attract a wave of institutional investors.
However, it’s important to note that the SEC is still in the process of reviewing multiple proposals from various companies. The outcome remains uncertain, and it will be crucial to closely monitor any updates from the regulatory authority regarding the potential approval of a spot Bitcoin ETF.