The chances of a spot Bitcoin exchange-traded fund (ETF) gaining approval in the United States have experienced a significant increase, rising from just 1% a couple of months ago to 65% currently. This positive development has been highlighted by Bloomberg ETF analysts Eric Balchunas and James Seyffart, who attribute the increased likelihood of approval to recent developments in the crypto market and the resubmission of ETF applications by entities like BlackRock.
Seyffart emphasizes the importance of the timing of the Grayscale case and how its outcome could impact the approval of Bitcoin ETFs. He suggests that if Grayscale succeeds in its legal battle against the Securities and Exchange Commission (SEC) in Federal court, it could pave the way for the simultaneous approval of multiple spot Bitcoin ETF applications by the end of the fourth quarter.
In a tweet, Seyffart underscores the significance of a Grayscale victory, stating that it could potentially trigger a wave of SEC approvals in the fourth quarter, contingent on SEC Chair Gary Gensler’s willingness to engage in a legal battle.
Seyffart adds that the surveillance sharing agreement (SSA) between BlackRock and Coinbase, as well as the ongoing ripple case, have significantly influenced the analysis of spot Bitcoin ETFs. He notes that their views and opinions are constantly updated with new information.
The surge in spot Bitcoin ETF filings began with BlackRock’s submission to the SEC on June 16. Other institutional giants such as WisdomTree, Invesco, Valkyrie, and many more followed suit in the second quarter of 2023. It is noteworthy that despite the previous rejections of all spot ETF filings by the Securities and Exchange Commission, market analysts believe that 2023 could be a crucial year for spot Bitcoin ETFs.
The attention garnered by the spot Bitcoin ETF race from major traditional financial institutions and analysts, such as Balchunas, signals a potential breakthrough for approval. Balchunas believes that the involvement of institutional giants like BlackRock could significantly increase the chances of a spot Bitcoin ETF gaining regulatory approval.
The approval of a spot Bitcoin ETF in the United States would have far-reaching implications for the cryptocurrency market, as it would provide a regulated means for investors to gain exposure to Bitcoin without directly owning the asset. It could also potentially attract significant institutional capital and potentially contribute to the mainstream acceptance and integration of cryptocurrencies.
As the regulatory landscape surrounding cryptocurrencies continues to evolve, the outcome of the Grayscale case and subsequent SEC approval decisions will be closely monitored by market participants. If a series of spot Bitcoin ETF approvals does occur in the fourth quarter, it could mark a pivotal moment in the maturation and wider adoption of digital assets within the traditional financial system.
In conclusion, the chances of a spot Bitcoin ETF receiving approval in the United States have risen dramatically in recent months. The timing of the Grayscale case and the outcome of its legal battle against the SEC will play a crucial role in determining the approval of Bitcoin ETFs. With the involvement of institutional giants and the resubmission of ETF applications, 2023 could prove to be a significant year for the spot Bitcoin ETF.