The Inevitability of Bitcoin Spot ETF Approval
According to Jay Clayton, the former chairman of the Securities and Exchange Commission (SEC), the approval of a Bitcoin Spot ETF is “inevitable.” During his tenure as chairman from May 2017 to December 2020, Clayton publicly expressed his belief in the eventual approval of a Bitcoin Spot ETF.
During an interview on CNBC Squawk Box, Clayton was asked if he would approve the current Bitcoin spot ETF submissions if he were still the SEC chairman. Although he didn’t provide a direct answer, Clayton acknowledged that Bitcoin is not a security and emphasized the demand for access to it from both retail and institutional investors.
As the now independent Director of Apollo Global Management and Senior Policy Advisor and Counsel for Sullivan & Cromwell LLP, Clayton also highlighted that trusted providers, who have fiduciary responsibilities, are eager to offer this product to the retail public.
The Dichotomy of Cash vs Futures ETF
Clayton commented on the ongoing debate between cash and futures ETFs, particularly in relation to the SEC’s attempt to differentiate between the two. A recent court decision in the Grayscale vs SEC case criticized the SEC’s arguments as “capricious and arbitrary.”
When asked about the safety of investing in a Bitcoin futures ETF compared to a Bitcoin cash ETF, Clayton initially expressed concerns about the manipulability of the cash market. However, he acknowledged that large institutions with surveillance mechanisms have reassured him that the cash market is reliable enough for the approval of a Bitcoin cash ETF.
Clayton concluded by mentioning the 45-day deferment on the decision, considering it a relatively short time in the context of progress towards a final ruling on the matter.
Hot Take: The Inevitable Path to Bitcoin Spot ETF Approval
With Jay Clayton, the former SEC chairman, predicting the inevitability of a Bitcoin Spot ETF approval, it becomes clear that the demand for and recognition of Bitcoin’s significance continue to grow. As regulatory discussions progress and trusted providers advocate for retail access to this product, the path toward approval becomes more evident. While the debate between cash and futures ETFs persists, the assurance from institutions with surveillance mechanisms strengthens the case for a Bitcoin cash ETF. The recent court decision criticizing the SEC’s differentiation attempts further supports the need for clarity in the regulatory landscape. In the grand scheme of things, the 45-day deferment is a small hurdle on the journey toward progress and the eventual approval of a Bitcoin Spot ETF.
Source: twitter.com
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