- Former SEC Chairman Jay Clayton expressed a high level of optimism that the first spot Bitcoin Exchange-Traded Fund (ETF) approval in the United States is highly likely.
- This optimistic sentiment stems from the recent court decision allowing Grayscale to convert its GBTC Bitcoin Trust into a spot ETF, potentially paving the way for the first spot Bitcoin ETF.
- This confidence is rooted in the fact that major financial institutions like BlackRock, Fidelity, and Ark Invest have developed significant confidence in cash transactions in the crypto asset space.
The SEC has decided to postpone all spot Bitcoin ETFs, but it may be inevitable that the SEC will approve spot Bitcoin ETF applications.
SEC May Approve a Spot Bitcoin ETF
Former SEC Chairman Jay Clayton expressed a high level of optimism that the first spot Bitcoin Exchange-Traded Fund (ETF) approval in the United States is highly likely. Clayton’s outlook is based on several key factors shaping the market landscape.
His statement on the CNBC Squawk Box program on September 1st came during an optimistic period for the cryptocurrency market. This optimism arose from the recent court decision allowing Grayscale to convert its GBTC Bitcoin Trust into a spot ETF, potentially paving the way for the first spot Bitcoin ETF. However, it is important to note that the Bitcoin price has not yet exhibited a strong upward trend in response to this significant development.
The former SEC Chairman expressed a strong belief that the approval of a spot ETF is almost certain given the current conditions. This confidence stems from the fact that major financial institutions like BlackRock, Fidelity, and Ark Invest have developed significant confidence in cash transactions in the crypto asset space. Clayton emphasized that these companies have effectively mitigated manipulation concerns in crypto trading. He stated:
“It is clear that Bitcoin is not a security. It’s something retail investors want to access, and, importantly, it’s something our most trusted providers want to bring to the retail public. Approval is inevitable.”
Grayscale’s Case
On August 29, 2023, the U.S. Court of Appeals for the District of Columbia ruled in favor of Grayscale in its case against federal regulators. This decision marks a significant turning point in the crypto market landscape by opening the path for the company to convert its Bitcoin Trust (GBTC) into a spot Bitcoin ETF.
As of now, Bitcoin is trading at $25,816. It experienced a 0.80% intraday decrease and has seen a slight 0.90% decrease over the past week.
