SEC Likely to Approve Spot Bitcoin ETF Soon, Predicts Bloomberg Analyst
Summary:
Bloomberg analyst, James Seyffart, predicts that the U.S. Securities and Exchange Commission (SEC) is compelled to approve a spot Bitcoin exchange-traded fund (ETF). Speaking at a CryptoQuant webinar, Seyffart suggests a 90% chance of this happening within a week, fueled by the lack of valid reasons for rejection and precedents set by recent events with firms like BlackRock and Grayscale. However, he warns of a likely slow adoption, with institutional investors conducting due diligence. Seyffart estimates a potential $10 billion inflow into Bitcoin ETFs in the first year if approved. The SEC's final decision is expected by January 10.
James Seyffart, a Bloomberg analyst, posits that the United States Securities and Exchange Commission (SEC) is likely in a position where it must approve a spot Bitcoin exchange-traded fund (ETF). Seyffart made this point while participating in an exclusive webinar with CryptoQuant on January 4, stating that the investment plan possesses a 90% likelihood of being cleared within a week, though hurdles could present themselves. Seyffart believes the SEC has run out of valid reasons for disapproval, and hints that the regulator might be forced to retreat from its somewhat entrenched stance. Seyffart's insights relate to the ongoing sequence of events subsequent to BlackRock's June filing for a spot BTC ETF. The SEC representatives have since convened numerous discussions with asset managers aiming for approval. This has led to the modification of various concerns and the demand for alterations. The SEC also conceded defeat in a court disagreement with Grayscale, another competitor vying for ETF approval, pertaining to the transformation of Grayscale's over-the-counter Grayscale Bitcoin Trust (GBTC) into a listed BTC ETF. Seyffart also weighed in on a recent report by Matrixport suggesting that all proposals may be consigned to the bin. He, however, disagreed with the insinuations, stating that several qualms regarding approval stipulations or Coinbase's participation in surveillance agreements have been satisfactorily resolved in previous months by revisions proposed by asset managers. Seyffart predicts that if approved in the upcoming days, Bitcoin ETFs could attract an estimated $10 billion in inflow during the first year. However, he dispelled any notions of accumulating over $100 billion in initial one or two years, observing that total gold ETFs in the U.S. amounts to approximately $100 billion. Seyffart also forewarned that universal adoption could be slow and span across weeks or months since institutional investors tend to perform exhaustive checks before considering the inclusion of cryptocurrency in their financial portfolios. Anticipating the SEC's conclusive decision due on January 10, Seyffart envisages a collective thumbs-up for all applicants, though he anticipates Grayscale's conversion might take longer in comparison to other proposed funds.
Published At
1/4/2024 11:00:00 PM
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