SEC Expected to Approve All Spot Bitcoin ETF Applications Simultaneously
Martin Bednall, former managing director at BlackRock and current CEO of Jacobi Asset Management, predicts that the Securities and Exchange Commission (SEC) will approve all spot bitcoin exchange-traded fund (ETF) applications simultaneously. Bednall believes that the SEC will not want to give any one applicant a first-mover advantage in this space. The approval of bitcoin ETFs would have a significantly positive impact on the crypto markets.
Steven Schoenfeld, CEO at VanEck-owned MarketVector Indexes, shares a similar view and states that it is highly likely that the SEC will approve all bitcoin ETF applications at once. He also suggests that the approvals may come sooner than previously anticipated, with a timeframe of 3 to 6 months rather than 9 to 12 months.
The recent actions by the SEC have indicated a shift in their approach towards ETF applications. Instead of outright rejections, they have been requesting comments and lost the Grayscale case. This loss implies that they may have to allow the conversion of Grayscale bitcoin trust into a spot bitcoin ETF.
BlackRock’s Relationship with Regulators
According to Bednall, BlackRock’s decision to apply for a spot bitcoin ETF suggests that they are confident in receiving SEC approval. He notes that BlackRock maintains close relationships with regulators globally and regularly engages in discussions with them. This proximity to regulators indicates that they are likely receiving positive signals regarding their application.
Additionally, Bednall mentions that BlackRock has strong connections with major investors such as endowments and pension funds. These relationships will facilitate these investors’ entry into the crypto asset class, which will be beneficial for crypto markets.
Potential Inflow and Ethereum Spot ETFs
If spot bitcoin ETFs are approved, Schoenfeld estimates that there could be a $150 to $200 billion inflow into bitcoin investment products over three years. This would significantly increase the assets under management (AUM) in current bitcoin products.
Last month, Ark Invest and 21Shares filed for the first ether spot ETF with the SEC. Following suit, Grayscale recently filed to convert its Ethereum trust into a spot ether ETF. The panelists believe that spot ether ETFs will likely receive approval shortly after the approval of spot bitcoin ETFs. They anticipate positive reception for these products due to factors such as ether’s staking rewards and its higher environmental and governance score compared to bitcoin.
Hot Take: SEC Approval of Bitcoin and Ethereum Spot ETFs Expected Soon
The Securities and Exchange Commission is anticipated to approve all spot bitcoin exchange-traded fund (ETF) applications simultaneously. This move is expected to have a significant positive impact on the crypto markets. BlackRock’s close relationship with regulators and major investors suggests confidence in receiving approval for their spot bitcoin ETF application. Furthermore, if approved, spot bitcoin ETFs could result in a substantial inflow of funds into bitcoin investment products. Additionally, there is growing interest in spot ether ETFs, with filings submitted by Ark Invest, 21Shares, and Grayscale. The executives predict that the approval of these products will follow closely after the approval of spot bitcoin ETFs.
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