Spot Bitcoin ETF Approval Chances Rise to 65%

Introduction: In recent times, there has been growing optimism surrounding…

3 Aug 2023 | 3 min read

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Introduction:

In recent times, there has been growing optimism surrounding the potential launch of a U.S. spot bitcoin exchange-traded fund (ETF). ETF analysts at Bloomberg Intelligence have increased their estimates of approval for a U.S. spot bitcoin ETF from 50% to 65%. Various developments, such as the SEC’s apparent approval of Coinbase’s bitcoin trading platform and SEC Chairman Gary Gensler’s statements, have contributed to this positive outlook. This article delves into the reasons behind the heightened probabilities and the impact these developments may have on the crypto market.

Key Takeaways:

ETF analysts at Bloomberg Intelligence raise the probability of a U.S. spot bitcoin ETF launch to 65%, up from the previous estimate of 50%.
Major financial institutions like BlackRock, Fidelity, WisdomTree, and Valkyrie have filed applications for a spot in bitcoin ETF, indicating a growing interest in making Bitcoin investments more accessible.
SEC Chairman Gary Gensler’s recent statements suggest a possible shift in his approach towards crypto-related matters, possibly signaling a more favorable stance towards bitcoin ETFs.
The SEC’s handling of Grayscale’s case could influence the approval of outstanding Bitcoin ETF applications.

The Growing Likelihood of a U.S. Bitcoin ETF:

Bloomberg Intelligence analysts, James Seyffart and Eric Balchunas, have revised their projections to approve and launch a spot bitcoin ETF in the U.S. The odds have been upgraded to 65% due to recent developments in the crypto space. The surge of interest from major financial institutions seeking to provide their clients with an easy way to invest in bitcoin has been crucial in reevaluating the chances of a bitcoin ETF approval.

Gary Gensler’s Statements and Coinbase’s Approval:

During an interview with Bloomberg, Gary Gensler, the SEC Chairman, was noted for downplaying his role within the agency regarding crypto matters. His emphasis on the existence of four other commissioners suggested a potential change in his stance on crypto. Market experts have perceived This change in approach as a positive sign. Additionally, the SEC’s apparent approval of Coinbase’s bitcoin trading platform further reinforces the notion that the regulatory body may be open to considering bitcoin ETFs.

Grayscale’s Case as a Catalyst:

The ongoing case between the SEC and crypto asset manager Grayscale has become a matter of interest. Bloomberg analysts expect Grayscale to win the case, which could potentially influence the SEC’s decision on outstanding bitcoin ETF applications. If Grayscale emerges victorious, the SEC might be inclined to approve other bitcoin ETFs, easing the way for investors to gain exposure to the crypto market.

Additional Read: Bitcoin Price Prediction

Conclusion:

According to Bloomberg Intelligence analysts, the probability of a U.S. spot bitcoin ETF launch has increased to 65%. This optimistic outlook is backed by the growing interest from major financial institutions and positive developments such as Gary Gensler’s statements and Coinbase’s apparent approval. While uncertainties remain, the market eagerly awaits the SEC’s decisions on outstanding applications.

Source: CoinDesk

FAQs

What are the key factors contributing to the increased likelihood of a U.S. Bitcoin ETF?

They are, Growing interest from major institutions like BlackRock, Fidelity, WisdomTree, and Valkyrie, Gary Gensler's apparent shift in approach towards crypto matters and the SEC's seeming approval of Coinbase's bitcoin trading platform.

How might Grayscale's case impact the approval of bitcoin ETFs?

If Grayscale wins the case, it could influence the SEC to approve other outstanding Bitcoin ETF applications.

Is there a guarantee that a U.S. Bitcoin ETF will launch this year?

While the probability has increased to 65%, uncertainties remain, and no guarantees can be provided.