Former BlackRock Executives Predict Spot Bitcoin ETF Approval in 3-6 Months
Former managing directors at BlackRock have weighed in on the approval of a spot Bitcoin exchange-traded fund (ETF) in the US, suggesting that it is now a question of “when” rather than “if.” During a panel discussion at CCData’s Digital Asset Summit, former BlackRock managing director Steven Schoenfield predicted that the US Securities and Exchange Commission (SEC) could approve a spot Bitcoin ETF within three to six months.
Former BlackRock managing director Steven Schoenfield gives the U.S. SEC “three to six months” before it approves a Bitcoin spot ETF and believes spot ETF approval may result in a “$150 to $200 billion inflow” into Bitcoin investment products over three years. Decrypt reported.…
— Wu Blockchain (@WuBlockchain) October 4, 2023
Shifting Tides in the Bitcoin ETF Landscape
This shorter timeline reflects a change in Schoenfield’s outlook, as he previously projected a nine to twelve month window. The shift can be attributed to the SEC’s recent approach of soliciting comments from the industry instead of outright rejecting spot Bitcoin ETF applications. This collaborative approach marks a significant improvement in dialogue according to Schoenfield. Another factor influencing potential approval is the Grayscale lawsuit, which increases the likelihood of its Bitcoin Trust becoming an ETF.
Fun fact: BlackRock’s record of getting ETFs approved by the SEC is 575-1. That’s another reason this is so big, they don’t play around.
— Eric Balchunas (@EricBalchunas) June 16, 2023
A Competitive Arena: BlackRock’s Position in the Crypto Domain
While BlackRock has a strong reputation and resources, it faces intense competition in the tradable digital asset space. Schoenfield acknowledges that several other firms are deeply committed to tradable digital assets and are closer to the crypto ecosystem than BlackRock. He believes that BlackRock will face significant challenges in securing a spot in Bitcoin ETF approval.
The Impact of Spot Bitcoin ETF Approval
Schoenfield predicts that if a spot Bitcoin ETF is approved, there could be a $150 to $200 billion inflow into Bitcoin investment products over the next three years. This influx of capital could greatly increase the assets under management for Bitcoin products.
Hot Take: Spot Bitcoin ETF Approval Imminent, According to Former BlackRock Executives
Former managing directors at BlackRock believe that the approval of a spot Bitcoin ETF in the US is now a matter of “when” rather than “if.” They predict that the US Securities and Exchange Commission (SEC) could approve a spot Bitcoin ETF within three to six months. This shift in outlook is due to the SEC’s more collaborative approach and the recent Grayscale lawsuit. However, BlackRock will face fierce competition from other firms in the crypto space. If approved, a spot Bitcoin ETF could result in a significant inflow of $150 to $200 billion into Bitcoin investment products over the next three years.
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