In an important development, Bloomberg Intelligence’s ETF experts have raised their predictions for the debut of a U.S. spot bitcoin exchange-traded fund (ETF) this year from 50% to 65%. The SEC’s positive signals toward cryptocurrency-related products boost excitement.
James Seyffart and Eric Balchunas, the analysts, cited two encouraging signs in support of their updated estimate. First, the analysts mentioned Coinbase’s bitcoin platform’s apparent approval by the SEC. Brian Armstrong, the CEO, reportedly received instructions to delist all cryptocurrencies except bitcoin. This action suggests the SEC’s willingness to accommodate the cryptocurrency industry to some extent.
The analysts highlighted SEC Chairman Gary Gensler’s attempt to downplay his role in a recent Bloomberg interview. Gensler emphasized the existence of four other commissioners at the agency. The shift in strategy indicates Gensler’s potential difficulty in maintaining anti-crypto stances amid political pressure.
Several significant organizations, including BlackRock, Fidelity, WisdomTree, and Valkyrie, have expressed interest in the potential approval of a spot Bitcoin ETF. To increase market accessibility for Bitcoin investing, these businesses have recently submitted applications. The increasing number of applications and recent events raise the chance of approval. Past denials may not hold.
A lot of interest has been focused on BlackRock’s application in particular because of its solid track record of getting ETF approvals. The analysts think that the Securities and Exchange Commission’s decision regarding BlackRock’s request for a Bitcoin ETF may be influenced by this background.
Bloomberg Optimism: Grayscale Case Bolsters Bitcoin ETF
The SEC case against crypto asset manager Grayscale, which is still pending, is another element supporting the analysts’ optimism. Bloomberg expects Grayscale to win, leading to SEC approval of pending bitcoin ETFs. Streamlining the approval process.
The analysts admit that the SEC’s decision-making procedure is difficult, despite the analysts’ growing optimism about the outcome. The cryptocurrency market is nevertheless eagerly awaiting more information from the regulatory body surrounding the possible licensing of a U.S. spot bitcoin ETF.
A spot Bitcoin ETF’s successful debut in the US might have significant repercussions for the cryptocurrency market. It might encourage the use of Bitcoin and further legitimize the digital asset class by giving institutional and ordinary investors a regulated and easily accessible investment instrument.
Investors and market participants will closely follow regulatory developments as the cryptocurrency market develops since they have a significant impact on the direction the sector will take in the future.