Coinbase Optimistic About SEC Approval for US Bitcoin Spot ETF
Coinbase’s Chief Legal Officer, Paul Grewal, is optimistic about the approval of their US spot Exchange Traded Fund (ETF) by the U.S. Securities and Exchange Commission (SEC).
In a conversation with CNBC, Grewal expressed confidence in a positive outcome for the approval, citing recent developments in the cryptocurrency sector.
Grewal’s optimism is shared by Bloomberg ETF analysts Eric Balchunas and James Seyffart, who have increased their estimate of approval chances to 90%. This positive anticipation is fueled by the SEC’s current legal strategy, as seen in their handling of Grayscale’s Bitcoin Trust (GBTC) conversion proposal.
Notably, the SEC did not contest a court ruling that supported Grayscale’s plan to transform GBTC into a physically-backed ETF, which boosted Grayscale’s prospects.
Grewal highlighted the U.S. Court of Appeals ruling that dismissed the SEC’s unjust denial of ETF applications similar to Grayscale’s GBTC Bitcoin fund conversion proposal. He emphasized that this court failure and the missed appeal deadline by the SEC could serve as catalysts for approvals of Bitcoin-related ETFs.
Furthermore, Grewal pointed out that industry giants such as BlackRock, Fidelity, and Invesco are also vying for Bitcoin ETF approvals. He suggested that the stature and credibility of these firms could play a decisive role in the approval process. Grewal also predicted the emergence of operational ETFs in the near future, driven by developments reigniting investor and consumer interest in cryptocurrency.
According to InvestingPro data, Coinbase currently has a market cap of $17.71 billion and has experienced a significant price uptick over the last six months, with a 6-month price total return of 26.46%.
Despite the volatility in Coinbase’s stock price movements, as indicated by InvestingPro Tips, the company has achieved a year-to-date price total return of 110.96%, albeit with a 3-month price total return of -25.95%.
Overall, Coinbase remains hopeful for the SEC’s approval of their US Bitcoin spot ETF, fueled by recent developments in the cryptocurrency sector and the potential influence of industry giants.
