- The U.S. SEC is speculated to approve all spot bitcoin ETF applications concurrently.
- Former BlackRock executive Martin Bednall and Steven Schoenfeld of VanEck discuss potential implications.
- Estimations project a “$150 to $200 billion inflow” into bitcoin investment products following approval.
The U.S. Securities and Exchange Commission might approve all spot bitcoin ETFs simultaneously, a significant move that could reshape crypto investment dynamics.
Insights from the CCData Digital Asset Summit
Martin Bednall, previously of BlackRock and now at the helm of Jacobi Asset Management, spoke at the CCData Digital Asset Summit, shedding light on the SEC’s prospective actions regarding bitcoin ETFs. “I don’t think they’re going to want to give anybody first mover advantage,” he said, suggesting that simultaneous approvals would be “hugely positive” for crypto markets.
Steven Schoenfeld’s Take on Approvals
Steven Schoenfeld, leading MarketVector Indexes under VanEck, resonated with Bednall’s thoughts. Schoenfeld believes that these approvals might come earlier than previously anticipated. Just a fortnight ago, his prediction was a waiting period of 9 to 12 months, but now he foresees a possible green light in a span of 3 to 6 months. This change in prediction follows the SEC’s recent action, where they refrained from outright rejection of ETF applications, choosing instead to solicit comments.
Implications of the Grayscale Case
Schoenfeld further emphasized that the SEC’s recent setback in the Grayscale case might play a pivotal role. This could compel the commission to approve the transformation of Grayscale bitcoin trust into a spot bitcoin ETF.
BlackRock’s Anticipated Role in Crypto Influx
Martin Bednall emphasized BlackRock’s proximity to global regulators, suggesting that their spot bitcoin ETF application indicates a positive anticipation of SEC approval. Christophe de la Celle of Numeus added that BlackRock’s close ties with significant investors, including endowments and pension funds, will greatly aid their maiden voyage into the crypto realm, which will be highly beneficial for crypto markets.
Potential Market Impact of Approvals
Spot bitcoin ETFs, once given the nod, could usher in an influx ranging between “$150 to $200 billion” into bitcoin investment avenues over a span of three years. Schoenfeld predicts that this might “double or triple the amount of AUM [assets under management] in current bitcoin products”.
Prospects for Ethereum Spot ETFs
Ark Invest, under Cathie Wood’s leadership, in association with crypto asset manager 21Shares, recently approached the SEC with the first ether spot ETF application. This development was closely followed by Grayscale’s motion to transform its Ethereum trust into a spot ether ETF. Despite the lukewarm reception of ether futures-based ETFs by VanEck and ProShares, spot ether ETFs are anticipated to gain traction, courtesy of ether’s staking rewards and a more favorable ESG score compared to bitcoin. The expert consensus is that the SEC will green-light spot ether ETFs shortly after the bitcoin ETFs.
Conclusion
The crypto market stands at the cusp of a transformative phase, with potential simultaneous approvals of spot bitcoin ETFs by the SEC. Such a move, coupled with the introduction of spot ether ETFs, could lead to substantial capital influx, redefining the landscape of crypto investments.
