Is the SEC Ready to Approve Bitcoin and Ethereum ETFs?

• Fred Thiel expresses increasing positive thoughts about the approval of the Bitcoin Exchange Traded Fund (ETF) by the United States Securities and Exchange Commission (SEC).
• Thiel’s confidence stems from the growing interest of institutional investors in the cryptocurrency space. He believes that in the past few months, the likelihood of SEC approving the Bitcoin ETF has exceeded 50%.
• Thiel’s perspective gains further weight due to his observation that the potential approval of the Ethereum Futures ETF could play a significant role in tipping the scales in favor of the Bitcoin ETF approval.

The possibilities of Bitcoin entering a recovery phase have raised questions about the fate of spot Bitcoin ETF applications; Is the likelihood of approval increasing?

SEC Could Be Close to Approving Spot Bitcoin ETFs

Fred Thiel, the CEO of Marathon Digital, expresses increasing positive thoughts about the approval of the Bitcoin Exchange Traded Fund (ETF) by the United States Securities and Exchange Commission (SEC).

Thiel’s confidence stems from the growing interest of institutional investors in the cryptocurrency space. He believes that in the past few months, the likelihood of SEC approving the Bitcoin ETF has exceeded 50%. Additionally, he highlighted that the regulatory agency approving the Ethereum Futures ETF could increase the probability of this decision.

In an interview, Fred Thiel expressed growing optimism about SEC’s stance on approving the Bitcoin Spot ETF. Thiel stated that the likelihood of the regulatory agency giving the green light to the Bitcoin Spot ETF is now better than a coin toss:

“I can’t say anything about the probabilities of something like this, because the fact that big firms like Larry Fink and BlackRock are trying to do this shows that they have pretty high ratings that they will get it through.”

Currently, there are approximately six applications awaiting approval to launch a spot Bitcoin ETF. Unlike existing futures-based ETFs, a spot Bitcoin ETF directly tracks the price of Bitcoin (BTC). This allows investors to gain exposure to Bitcoin without having to buy and store it themselves.

BlackRock, the world’s largest asset manager with over $9 trillion in assets under management, along with many well-known firms such as Wisdom Tree, VanEck, Valkyrie, and Fidelity, are competing to offer a Bitcoin Exchange Traded Fund (ETF).

Ethereum ETF and the Fate of Bitcoin

Thiel’s perspective gains further weight due to his observation that the potential approval of the Ethereum Futures ETF could play a significant role in tipping the scales in favor of the Bitcoin ETF approval. This interdependence reflects SEC’s acceptance of expanding access to digital assets. It could potentially serve as a precedent for positive regulatory decisions.

Furthermore, Bitcoin has an advantage in terms of regulatory oversight compared to Ethereum, as it is not classified as a security by the SEC. This advantageous regulatory position could contribute to a smoother approval process for the Bitcoin ETF.

Thiel also revealed that his views are based on the fact that SEC could approve a spot Ethereum ETF within the applications expected around October.

Understanding Regulatory Impact

Thiel emphasized the impact of regulations on market outcomes and highlighted their interconnectedness. He noted that positive developments, such as the ongoing lawsuit involving Coinbase, could be necessary to alleviate regulatory pressures. The resolution of the Ripple case could serve as an example of the decision-making process of the United States Securities and Exchange Commission (SEC).

The debates regarding the approval of spot BTC ETFs continue, and the market eagerly awaits SEC’s decision.