Cantor Fitzgerald Identifies Spot Bitcoin ETF as Crucial Near-Term Catalyst

The Road to a Spot Bitcoin ETF Approval

Analysts at Cantor Fitzgerald, a financial services firm, believe that the long-awaited spot bitcoin exchange-traded fund (ETF) is on the brink of becoming a reality. According to Bloomberg News, Cantor Fitzgerald is increasingly confident that the Securities and Exchange Commission (SEC) will approve the applications from asset managers to launch a spot ETF for bitcoin. The SEC has been hesitant to approve such a product due to concerns about manipulation on offshore spot platforms. However, the agency may grant approval based on the market surveillance procedures proposed by new applicants.

Surveillance-Sharing Agreement as a Solution

Cantor Fitzgerald’s analysts, Josh Siegler and Will Carlson, suggest that a comprehensive surveillance-sharing agreement with a regulated market of significant size could appease regulators. They believe that approval of a spot ETF would be a significant short-term catalyst for bitcoin’s price and its long-term adoption and legitimization.

BlackRock’s Proposal and Recent Bitcoin Surge

Prior proposals for a spot ETF have been rejected by the SEC, citing concerns about the lack of information sharing among exchanges to prevent market manipulation. However, BlackRock, which submitted its proposal in June, has entered into an agreement with Coinbase to detect and address market irregularities. The potential approval of a spot ETF has contributed to Bitcoin’s recent surge in value, reaching around $35,000 earlier this month.

Hot Take: A Turning Point for Bitcoin

If the SEC approves the launch of a spot bitcoin ETF, it could mark a significant turning point for the cryptocurrency. The approval would provide increased legitimacy and adoption for Bitcoin in both the short and long term. This development has generated optimism among investors and is expected to have a positive impact on Bitcoin’s price. As the anticipation builds, the crypto community eagerly awaits the SEC’s decision, which could shape the future of Bitcoin as an investment asset.