Hopes for approval of a Bitcoin ETF (exchange-traded fund) in the US have gained momentum, with indications that the country’s Securities and Exchange Commission (SEC) may be inclined to approve the proposal sooner rather than later.
The prediction was recently reinforced after the SEC decided not to appeal a court decision challenging its veto over the conversion of Grayscale’s GBTC fund, owner of the largest Bitcoin fund in the world.
Paul Grewal, the Chief Legal Officer at Coinbase – the largest cryptocurrency exchange in the US – expressed optimism about the approval of ETFs. According to him, there is a high chance of approval, especially for requests that strictly comply with the legislation.
“I am very hopeful that these requests [de ETF] will be granted, even though they should be granted according to the law”says Grewal in an interview with CNBC.
Bitcoin ETF will be approved soon
Grewal believes that major financial sector companies such as BlackRock and Fidelity, which have presented robust proposals, could see progress toward ETFs.
Approval would provide investors with an alternative way to invest in Bitcoin, avoiding the need to purchase directly from brokers.
He adds that the regulator is likely to approve a bitcoin ETF soon, highlighting the regulator’s failure to prevent Grayscale from converting its GBTC bitcoin fund into an ETF.
“We believe ETFs will be approved soon because the SEC follows the law and is required to apply it neutrally to pending applications.” he said.
The ETF would offer investors a more streamlined way to gain exposure to Bitcoin, which could be particularly attractive to those who prefer not to own the asset directly.
Bitcoin on the rise
The crypto landscape is showing mixed signals. Bitcoin’s value has made a remarkable recovery this year, rising 72% after significant declines in 2021.
The increase can be attributed to the change in the Federal Reserve’s stance on interest rates and the expectation of Bitcoin’s next halving, which will impact miners’ rewards.
However, the sector has also witnessed challenges. Trading volumes fell and several leading companies, including FTX, faced significant crises, with some even being accused of fraud.
Amid such challenges, Grewal emphasized the importance of holding industry fraudsters accountable, stating that strict processes and regulatory measures are critical. He concluded by expressing optimism about the future of cryptocurrencies, expecting a revival of interest from investors and consumers.
“So this suggests, I think, that we will see progress before too long.”
The approval of a Bitcoin ETF in the US would not only make it easier for investors to access the cryptocurrency, but would also be an important step in integrating digital currencies into the financial mainstream.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
