Bitcoin ETF Approval Anticipated by Year-End, Following Shifting SEC Stance
The evolving landscape of digital assets and regulatory clarity is likely to trigger a shift in the U.S. Securities and Exchange Commission’s (SEC) stance on Exchange-Traded Funds (ETFs) by the end of 2023.
According to Mike Novogratz, CEO of Galaxy Digital, the SEC’s current rulings allowing futures ETFs but not cash ones show intellectual inconsistency. Novogratz pointed out the strong demand from the American public for cash ETF offerings. He also highlighted the intense pressure on SEC Chairman Gary Gensler from industry giants such as BlackRock, Fidelity, Grayscale, and Invesco to meet this demand.
Despite their vested interests, crypto insiders are pushing for regulatory clarity in the digital asset landscape. Public sentiment, filings, and an expected positive market response all indicate a heightened optimism for Bitcoin ETF approval.
Analyst Melker projected Bitcoin spot ETF approval due to shifting dialogues within the SEC and an encouraging post from Andrew. This aligns with Novogratz’s earlier projection and Gensler’s active consideration of the product.
The journey towards Bitcoin spot ETFs started in 2013 with an application by the Winklevoss Twins. If approved, these ETFs would make Bitcoin a compliant security for stock exchange trading. Key influences on this potential shift include Grayscale Investments’ litigation loss, pressure from lawmakers and industry stakeholders, and a fake news application from BlackRock.
BlackRock’s Larry Fink noted that investors eagerly await Bitcoin’s “flight to quality”. Approval of Bitcoin spot ETFs could potentially ignite the next bull cycle for Bitcoin, as suggested by a recent short-paced market rally.
This article was generated with the support of AI and reviewed by an editor.
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