SEC’s Options Limited, Bitcoin Spot ETF Approval Likely, Say Analysts

8:42 pm
August 30, 2023

The US Securities and Exchange Commission (SEC) may soon be compelled to approve the first Bitcoin spot ETF for the US market, according to Bloomberg ETF analysts Eric Balchunas and James Seyffart. They believe the SEC has “very little wiggle room” after the recent court decision granting a review petition by Grayscale Investments, which resulted in a loss for the SEC. The analysts have increased the odds of a Bitcoin spot ETF approval this year to 75% and predict a 95% chance by the end of next year.

Experts Cite Legal and PR Loss for the SEC

Balchunas and Seyffart argue that the SEC is facing both a legal and public relations loss as a result of Grayscale’s win. They believe that denying further spot ETFs would be “politically untenable” for the SEC. The PR impact and widespread media coverage of the case could shape public perception and put pressure on the SEC to approve a Bitcoin spot ETF. The analysts also note that the SEC may find it difficult to deny the unique approach proposed by crypto asset management firm Hashdex.

Upcoming ETF Decisions and Deadlines

The SEC recently delayed a decision on the Ark 21Shares Bitcoin ETF proposal. Additionally, there are upcoming deadlines for several filings, including those from BlackRock and Fidelity. While the SEC still has the option to delay or deny these ETF proposals, the analysts believe the agency’s room for maneuvering is limited.

FAQs

What is a Bitcoin spot ETF?

A Bitcoin spot ETF is an exchange-traded fund that allows investors to gain exposure to the price movements of Bitcoin. Unlike futures-based ETFs, spot ETFs invest directly in Bitcoin, providing investors with ownership of the underlying asset.

Why is the SEC’s approval of a Bitcoin spot ETF significant?

The SEC’s approval of a Bitcoin spot ETF would be significant because it would provide easier access to Bitcoin for traditional investors. It would also legitimize Bitcoin as an asset class and potentially attract more institutional investors to the cryptocurrency market.

What are the chances of a Bitcoin spot ETF being approved?

According to Bloomberg ETF analysts Eric Balchunas and James Seyffart, the odds of a Bitcoin spot ETF being approved this year are 75%. They predict a 95% chance of approval by the end of next year.

How would the approval impact the cryptocurrency market?

The approval of a Bitcoin spot ETF would likely lead to increased demand for Bitcoin, as it would open the door for a broader range of investors to enter the market. This could potentially drive up the price of Bitcoin and contribute to its mainstream adoption.

What are the potential risks associated with a Bitcoin spot ETF?

One potential risk is increased market volatility, as a Bitcoin spot ETF could attract speculative trading activity. Additionally, there may be concerns about market manipulation and the security of the underlying Bitcoin holdings of the ETF.

Are there any alternative ways to invest in Bitcoin for traditional investors?

Traditional investors who want exposure to Bitcoin but are unable to invest directly in a Bitcoin spot ETF can consider alternative investment vehicles such as Grayscale’s Bitcoin Trust (GBTC) or other cryptocurrency-focused investment funds. These vehicles provide indirect exposure to Bitcoin through shares of the trust or fund.

Summary

Analysts Eric Balchunas and James Seyffart believe that the US Securities and Exchange Commission (SEC) is running out of options and may have to approve the first Bitcoin spot ETF for the US market. They argue that the SEC’s recent loss in the court case involving Grayscale Investments, combined with the potential negative PR impact, would make it politically difficult for the SEC to deny further spot ETFs. The analysts have increased the probability of a Bitcoin spot ETF approval this year to 75% and predict a 95% chance by the end of next year. While the SEC still has the power to delay or deny upcoming ETF proposals, the analysts suggest that the regulator’s ability to do so is limited.


Share:

More in this category ...

7:27 pm April 30, 2024

Ripple companions with SBI Group and HashKey DX for XRPL answers in Japan

Featured image for “Ripple companions with SBI Group and HashKey DX for XRPL answers in Japan”
6:54 pm April 30, 2024

April sees $25M in exploits and scams, marking historic low ― Certik

Featured image for “April sees $25M in exploits and scams, marking historic low ― Certik”
5:21 pm April 30, 2024

MSTR, COIN, RIOT and different crypto shares down as Bitcoin dips

Featured image for “MSTR, COIN, RIOT and different crypto shares down as Bitcoin dips”
10:10 am April 30, 2024

EigenLayer publicizes token release and airdrop for the group

Featured image for “EigenLayer publicizes token release and airdrop for the group”
7:48 am April 30, 2024

VeloxCon 2024: Innovation in knowledge control

Featured image for “VeloxCon 2024: Innovation in knowledge control”
6:54 am April 30, 2024

Successful Beta Service release of SOMESING, ‘My Hand-Carry Studio Karaoke App’

Featured image for “Successful Beta Service release of SOMESING, ‘My Hand-Carry Studio Karaoke App’”
2:58 am April 30, 2024

Dogwifhat (WIF) large pump on Bybit after record reasons marketplace frenzy

Featured image for “Dogwifhat (WIF) large pump on Bybit after record reasons marketplace frenzy”
8:07 pm April 29, 2024

How fintech innovation is riding virtual transformation for communities around the globe  

Featured image for “How fintech innovation is riding virtual transformation for communities around the globe  ”
7:46 pm April 29, 2024

Wasabi Wallet developer bars U.S. customers amidst regulatory considerations

Featured image for “Wasabi Wallet developer bars U.S. customers amidst regulatory considerations”
6:56 pm April 29, 2024

Analyst Foresees Peak In Late 2025

Featured image for “Analyst Foresees Peak In Late 2025”
6:59 am April 29, 2024

Solo Bitcoin miner wins the three.125 BTC lottery, fixing legitimate block

Featured image for “Solo Bitcoin miner wins the three.125 BTC lottery, fixing legitimate block”
7:02 pm April 28, 2024

Ace Exchange Suspects Should Get 20-Year Prison Sentences: Prosecutors

Featured image for “Ace Exchange Suspects Should Get 20-Year Prison Sentences: Prosecutors”
7:04 am April 28, 2024

Google Cloud's Web3 portal release sparks debate in crypto trade

Featured image for “Google Cloud's Web3 portal release sparks debate in crypto trade”
7:08 pm April 27, 2024

Bitcoin Primed For $77,000 Surge

Featured image for “Bitcoin Primed For $77,000 Surge”
5:19 pm April 27, 2024

Bitbot’s twelfth presale level nears its finish after elevating $2.87 million

Featured image for “Bitbot’s twelfth presale level nears its finish after elevating $2.87 million”
10:07 am April 27, 2024

PANDA and MEW bullish momentum cool off: traders shift to new altcoin

Featured image for “PANDA and MEW bullish momentum cool off: traders shift to new altcoin”
9:51 am April 27, 2024

Commerce technique: Ecommerce is useless, lengthy are living ecommerce

Featured image for “Commerce technique: Ecommerce is useless, lengthy are living ecommerce”
7:06 am April 27, 2024

Republic First Bank closed by way of US regulators — crypto neighborhood reacts

Featured image for “Republic First Bank closed by way of US regulators — crypto neighborhood reacts”
2:55 am April 27, 2024

China’s former CBDC leader is beneath executive investigation

Featured image for “China’s former CBDC leader is beneath executive investigation”
10:13 pm April 26, 2024

Bigger isn’t all the time higher: How hybrid Computational Intelligence development permits smaller language fashions

Featured image for “Bigger isn’t all the time higher: How hybrid Computational Intelligence development permits smaller language fashions”
7:41 pm April 26, 2024

Pantera Capital buys extra Solana (SOL) from FTX

Featured image for “Pantera Capital buys extra Solana (SOL) from FTX”
7:08 pm April 26, 2024

Successful Beta Service release of SOMESING, ‘My Hand-Carry Studio Karaoke App’

Featured image for “Successful Beta Service release of SOMESING, ‘My Hand-Carry Studio Karaoke App’”
12:29 pm April 26, 2024

SEC sues Bitcoin miner Geosyn Mining for fraud; Bitbot presale nears $3M

Featured image for “SEC sues Bitcoin miner Geosyn Mining for fraud; Bitbot presale nears $3M”
10:34 am April 26, 2024

Business procedure reengineering (BPR) examples

Featured image for “Business procedure reengineering (BPR) examples”
7:10 am April 26, 2024

85% Of Altcoins In “Opportunity Zone,” Santiment Reveals

Featured image for “85% Of Altcoins In “Opportunity Zone,” Santiment Reveals”
5:17 am April 26, 2024

Sam Altman’s Worldcoin eyeing PayPal and OpenAI partnerships

Featured image for “Sam Altman’s Worldcoin eyeing PayPal and OpenAI partnerships”
10:55 pm April 25, 2024

Artificial Intelligence transforms the IT strengthen enjoy

Featured image for “Artificial Intelligence transforms the IT strengthen enjoy”
10:04 pm April 25, 2024

Franklin Templeton tokenizes $380M fund on Polygon and Stellar for P2P transfers

Featured image for “Franklin Templeton tokenizes $380M fund on Polygon and Stellar for P2P transfers”
7:13 pm April 25, 2024

Meta’s letting Xbox, Lenovo, and Asus construct new Quest metaverse {hardware}

Featured image for “Meta’s letting Xbox, Lenovo, and Asus construct new Quest metaverse {hardware}”
2:52 pm April 25, 2024

Shiba Inu (SHIB) unveils bold Shibarium plans as Kangamoon steals the display

Featured image for “Shiba Inu (SHIB) unveils bold Shibarium plans as Kangamoon steals the display”