According to Bloomberg experts, there is now a 75% chance that a spot Bitcoin ETF will be approved in the US. Grayscale’s recent legal victory over the Securities and Exchange Commission (SEC) has given Bitcoin ETFs new momentum after the SEC rejected them three times previously.
In Grayscale’s action against the SEC, the United States Court of Appeals for the Second Circuit made a decision in its favor on August 30. The SEC’s decision to reject Grayscale’s request to convert its Grayscale Bitcoin Trust (GBTC) fund into a spot Bitcoin ETF was upheld by the court as lacking adequate rationale.
The bitcoin community has reacted very positively to the court’s ruling. Many think that the ruling may open the door for the acceptance of additional spot Bitcoin ETFs in the US.
Bloomberg experts think that now that the Grayscale litigation has been settled, the SEC is more inclined to approve a spot Bitcoin ETF. As a result of the court’s ruling, the SEC must now offer a more convincing explanation for rejecting requests for Bitcoin ETFs.
In addition, there is pressure on the SEC to establish a Bitcoin ETF. The SEC is under pressure to regulate the market effectively as a result of the rising popularity of cryptocurrencies. The SEC may be able to better regulate the market with the aid of a spot Bitcoin ETF.
A spot Bitcoin ETF could still be rejected by the SEC, though. Spot Bitcoin ETFs might be considered too risky for ordinary investors, according to the SEC. Additionally, the SEC may claim that spot Bitcoin ETFs could promote speculating and money laundering.
The bitcoin market may be significantly affected if the SEC approves a spot Bitcoin ETF. Retail investors would have easier access to cryptocurrencies thanks to a spot Bitcoin ETF. This can result in higher pricing and more demand for cryptocurrencies.
A spot Bitcoin ETF may also contribute to the legitimacy of cryptocurrencies. The SEC’s acceptance of cryptocurrencies as a genuine asset class would be demonstrated by the existence of a spot Bitcoin ETF. This might encourage institutional investors to invest more money in the bitcoin market.
Overall, according to Bloomberg experts, there is a good likelihood that a spot Bitcoin ETF will be approved in the US this year. A number of things could result in acceptance, including Grayscale’s recent court victory and the mounting pressure on the SEC to establish a spot Bitcoin ETF.
Additional details
Here are some extra details regarding the approval procedure for spot Bitcoin ETFs in the US, in addition to the information provided in the article:
There is a long history of the SEC rejecting requests for Bitcoin ETFs. Three prior requests for spot Bitcoin ETFs were denied by the SEC due to worries about market manipulation and investor safety.
The possibility of market manipulation, investor protection, and the effect on the larger financial system are likely to all be taken into consideration by the SEC when deciding whether to authorize a spot Bitcoin ETF.
The SEC’s approval of a spot Bitcoin ETF would undoubtedly be a major turning point for the cryptocurrency sector. A spot Bitcoin ETF would provide investors with access to cryptocurrencies and potentially aid in establishing the market’s legitimacy.
Conclusion
An important milestone for the cryptocurrency market would be the acceptance of a spot Bitcoin ETF in the US. A spot Bitcoin ETF would provide investors with access to cryptocurrencies and potentially aid in establishing the market’s legitimacy.