SEC Likely to Approve Bitcoin ETF, Says Bloomberg Analyst
Bloomberg analyst James Seyffart has revealed that there is a high chance the SEC will approve a spot Bitcoin exchange-traded fund (ETF). In a recent webinar, Seyffart argued that the SEC must either find new reasons to deny approval or concede to approving the ETF. This comes after Grayscale’s recent court ruling in favor of converting its Bitcoin Trust into an ETF.
Asset Managers Making Progress in Meeting SEC Requirements
Seyffart disagrees with Matrixport’s prediction of potential rejections, as asset managers have been actively working towards meeting the SEC’s requirements. They have engaged in meetings with SEC officials and made modifications, including surveillance agreements with platforms like Coinbase.
Final Decision on Bitcoin ETFs
Eric Balchunas, another industry analyst, confirmed that the approval process for Bitcoin ETFs is at an advanced stage. He stated that the SEC is currently giving final comments, and issuers will soon submit final documents. Sources close to the matter predict that the SEC will approve multiple firms’ applications for a spot Bitcoin ETF.
Potential Market Impact and Institutional Caution
Seyffart predicts a significant market impact with a potential influx of $10 billion into Bitcoin ETFs in the first year. However, reaching the $100 billion mark may take longer. Institutional investors are approaching cautiously, conducting thorough due diligence and relying on approved investment lists. This suggests a gradual adoption process among sophisticated traders.
Anticipation for the SEC’s Final Decision
The cryptocurrency sector eagerly awaits the SEC’s final decision on January 10. Seyffart expects approval from all applicants, with Grayscale’s conversion potentially taking a few extra days. This decision could be a game-changer for the crypto market and pave the way for institutional investment in cryptocurrencies.
Hot Take: SEC Likely to Greenlight Bitcoin ETF
Bloomberg analyst James Seyffart believes that there is a high likelihood of the SEC approving a spot Bitcoin ETF. The recent court ruling in favor of Grayscale’s Bitcoin Trust conversion into an ETF has put pressure on the SEC to either find new reasons for denial or approve the ETF. Asset managers have been actively working towards meeting the SEC’s requirements, increasing the chances of approval. If approved, a Bitcoin ETF could bring significant market impact, with potential inflows of billions of dollars. However, institutional investors may approach cautiously, leading to a gradual adoption process. The crypto market eagerly awaits the SEC’s final decision, which could set a new precedent for institutional investment in cryptocurrencies.
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