- The cryptocurrency market continues to be focused on possible approval speculations of the Securities and Exchange Commission’s (SEC) spot Bitcoin Exchange Traded Fund (ETF).
- Neel Maitra, a former SEC employee and member of Gary Gensler’s crypto division, predicted that a spot Bitcoin ETF could become a reality within a few months.
- Another reason behind the growing excitement was the listing of BlackRock’s Bitcoin ETF, overseen by the Depository Trust and Clearing Corp.
While it remains a matter of curiosity what the US Securities and Exchange Commission will do about spot Bitcoin ETFs, the former SEC employee clarifies the issue!
Former SEC Employee Explains His Expectations for ETF
One of the key factors Maitra highlighted for the approval of a spot Bitcoin ETF is the strong relationship between Bitcoin futures and the spot market. This connection indicates that concerns about potential market manipulation may have been exaggerated, which is a significant argument in favor of approving a spot ETF.
Maitra said, “In general, it seems like a spot BTC ETF could really be approved and trade within a few months.” According to him, the potential approval of a spot Bitcoin ETF aligns with the widespread sentiment in the crypto industry that the SEC is warming up to accepting digital assets and related financial products.
Indeed, ETF speculations reignited following years of continuous rejections of applications. In particular, there was a setback when the SEC received a judge’s decision that there was no valid reason to reject Grayscale’s application to convert its GBTC Bitcoin fund into an ETF.
By choosing not to challenge the decision, the SEC may have paved the way for the approval of such a product. The judge’s decision was related to the SEC’s prior approval of a Bitcoin futures ETF in 2021, with then-Chairman Gensler arguing that the futures market provided more natural protections for investors compared to the spot market.
Another reason for the increased excitement was BlackRock’s Bitcoin ETF being listed on a clearing platform associated with Nasdaq, which oversees shares and ETFs.
The Significance of a Spot ETF for Crypto
The potential approval of a Bitcoin ETF has generated substantial enthusiasm primarily for its ability to attract institutional investors to the cryptocurrency space, providing them with a regulated and more accessible avenue. However, despite the growing optimism regarding the green light for a Bitcoin ETF, the final decision remains uncertain.
Throughout its history, the SEC has been cautious in addressing financial products related to cryptocurrencies, citing concerns such as market manipulation and the protection of investor interests. In the meantime, Bitcoin continues to target the $35,000 level, gaining more than 15% in value amid ETF speculations.
