Former BlackRock Executive Predicts Bitcoin Spot ETF Approval in 3-6 Months
The CEO of MarketVector Indexes and former BlackRock managing director, Steven Schoenfield, believes that the U.S. Securities and Exchange Commission (SEC) will approve a Bitcoin spot exchange-traded fund (ETF) within the next three to six months. Schoenfield made this prediction during a panel discussion on ETFs at CCData’s Digital Asset Summit in London. He was joined by Martin Bednall, the CEO of Jacobi Asset Management and another ex-BlackRock director.
Schoenfield’s estimate came as a response to Bednall’s comments that the SEC would likely approve all ETF applications simultaneously to avoid giving anyone a first-mover advantage. Previously, Schoenfield had predicted it would take nine to twelve months for an ETF approval. However, the recent decision by the SEC to delay verdicts on several pending applications is seen as a positive change in dialogue.
Schoenfield also mentioned the Grayscale lawsuit, which the SEC lost. He believes this loss indicates that the SEC will have to allow the conversion of the Grayscale Bitcoin Trust into an ETF.
BlackRock’s Potential Role in Bitcoin ETF Approval
BlackRock, with $9.42 trillion in assets under management (AUM), is considered a strong contender for getting a Bitcoin spot ETF approved through its pending application. The asset manager has a track record of successfully getting ETFs through the SEC, with a score of 575-1.
In 2017, BlackRock’s CEO Larry Fink referred to Bitcoin as an “index of money laundering.” However, in a recent appearance on FOX News, Fink acknowledged that crypto is “digitizing gold in many ways.”
During the panel discussion, Bednall expressed his belief that BlackRock’s strong brand and resources would give them a first-mover advantage if the SEC starts approving Bitcoin spot ETFs. Schoenfield disagreed, stating that there are several other firms deeply committed to tradable digital assets and closer to the crypto ecosystem than BlackRock.
Schoenfield also shared that his company has projected a potential $150 to $200 billion inflow into Bitcoin investment products over three years if spot ETFs are approved. This influx of capital would significantly increase the amount of AUM in current Bitcoin products.
Hot Take: Outlook for Bitcoin Spot ETF Approval
The former BlackRock executives’ predictions and insights suggest that the approval of a Bitcoin spot ETF may be imminent. With the SEC’s recent change in approach and the involvement of major players like BlackRock, it is likely that regulatory barriers will continue to be overcome. If approved, a Bitcoin spot ETF could attract billions of dollars in investment, further legitimizing and expanding the cryptocurrency market.
By
By
By