The US Securities and Exchange Commission (SEC) could approve a Bitcoin Exchange Traded Fund (ETF) within months. This is the expectation of Neel Maitra, partner at Wilson Sonsini and former member of SEC President Gary Gensler’s cryptography department.
Correlation between Bitcoin futures and spot market
Maitra points to the strong correlation between Bitcoin futures and the spot market as a key factor in the spot approval of Bitcoin ETFs. This context suggests that concerns about potential market manipulation may be overblown, providing an argument against recommending a spot ETF.
“At a high level, it appears that a spot BTC ETF could be approved and traded within months,” says Maitra.
The possible approval of a spot Bitcoin ETF aligns with growing sentiment in the crypto industry for the SEC to accept digital assets and related financial products.
Grayscale got good news
Speculation about the ETF issuance has increased again after years of rejection by the SEC. Notably, the SEC recently suffered a setback when a judge ruled that the regulator had no good reason to reject the application of cryptocurrency-focused asset manager Grayscale, which wanted to convert its GBTC Bitcoin fund into an ETF.
Expectations have risen since the SEC decided not to appeal this ruling. The judge’s decision was contingent on the SEC’s prior approval of a Bitcoin futures ETF in 2021. At the time, Chairman Gensler argued that the futures market offered investors greater inherent protection than the spot market.
BlackRock Bitcoin ETF
BlackRock is a large American investment company that has developed a Bitcoin ETF. This ETF, called “BlackRock Bitcoin ETF Trust,” would be regulated by the Depository Trust and Clearing Corporation (DTCC). The DTCC is a clearinghouse responsible for managing stocks and ETFs.
The addition of BlackRock’s Bitcoin ETF to a list monitored by the DTCC is a significant step toward the ETF’s SEC approval. This suggests that the SEC has enough confidence in the ETF to regulate it.
Source: BtcDirect
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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.
