Spot Bitcoin ETF Could Receive Approval in Months, Predicts Former SEC Insider
The cryptocurrency market is abuzz with speculation about the potential approval of a spot Bitcoin Exchange Traded Fund (ETF) by the Securities Exchange Commission (SEC). Experts have been offering their predictions on when this product might receive approval. Neel Maitra, a partner at Wilson Sonsini and former member of the SEC chairman Gary Gensler’s crypto division, believes that the spot Bitcoin ETF could become a reality in a matter of months.
Maitra points to the strong correlation between Bitcoin futures and the spot market as a key factor favoring the approval of a spot Bitcoin ETF. This connection suggests that concerns over market manipulation may be overstated, which is an important argument against approving such an ETF.
SEC’s Potential Embrace of the Crypto Sector
Maitra also believes that the potential approval of a spot Bitcoin ETF aligns with the growing sentiment in the crypto industry that the SEC is becoming more open to embracing digital assets and related financial products. This speculation has been reignited after years of consistent rejection by the SEC. A recent setback faced by the SEC when a judge ruled against its rejection of Grayscale’s application to transform its GBTC Bitcoin fund into an ETF has further fueled anticipation.
The judge’s decision was based on the SEC’s prior approval of a Bitcoin futures ETF, indicating that Chair Gensler himself acknowledged that the futures market offers more protections for investors compared to the spot market.
In addition, BlackRock’s inclusion of a Bitcoin ETF in a list overseen by Nasdaq-associated clearinghouse Depository Trust and Clearing Corp has contributed to the growing enthusiasm surrounding this topic.
Significance of Spot ETF in Crypto
A potential approval of a Bitcoin ETF holds significant importance in the crypto space as it could attract institutional investors, providing them with a regulated and easily accessible pathway for Bitcoin investments. However, it’s important to note that the final decision by the SEC remains uncertain, as the regulatory body has historically shown caution in dealing with cryptocurrency-related financial products due to concerns about market manipulation and investor protection.
Hot Take: Bitcoin Targets $35,000 Amid ETF Speculation
As anticipation grows around the potential approval of a spot Bitcoin ETF, Bitcoin has been making gains and is now targeting the $35,000 level. In just one week following the ETF speculation, its price has risen by over 15%. This demonstrates the impact that the prospect of an approved Bitcoin ETF can have on the cryptocurrency market.
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