The cryptocurrency market continues to attract attention around the rumors of the approval of a Bitcoin Exchange Traded Fund (ETF) by the Securities and Exchange Commission (SEC). The increasing positive expectations about the ETF have led various analysts and experts to speculate on when the ETF could be approved.
SEC and the Future of Bitcoin ETF
In line with the expectation of ETF approval, Neel Maitra, a former member of the SEC’s crypto division and partner at Wilson Sonsini, expressed the opinion that a spot Bitcoin ETF could be launched in the coming months, according to a news report shared by Benzinga on October 27.
Maitra drew attention to an important point regarding the approval of a spot Bitcoin ETF and added:
The strong correlation between Bitcoin futures and the spot market. This connection indicates that concerns about potential market manipulation, which is a significant argument against the approval of a spot ETF, may be exaggerated. It appears that a spot BTC ETF is indeed something that could be approved and traded within a few months.
According to the renowned expert, the potential approval of a spot Bitcoin ETF aligns with the SEC’s positive stance towards crypto assets and other financial products related to it, parallel to the growing sentiment in the crypto industry.
Rumors related to ETFs regained attention with the news of lawsuits following the constant rejection of applications by the SEC. An example of this situation can be shown by the case of Grayscale’s GBTC being converted into an ETF, where the SEC was found to be unjust.
Following this situation, the SEC announced that it would not appeal the court’s decision. This situation may have potentially opened the way for the ETF. The judge’s decision is a reflection of a precedent-setting ruling. The SEC approved a Bitcoin futures ETF in 2021.
Spot Bitcoin ETF and the Economy
The increasing possibility of the approval of a Bitcoin ETF, especially after the recent SEC case, seems like a significant step in attracting companies to the cryptocurrency field and providing them with regulated access to Bitcoin investments.
Despite the growing optimism about the approval of a Bitcoin ETF, it is worth noting that the SEC still has the possibility to extend the process with other reasons. Lastly, after the week of Bitcoin ETF rumors, Bitcoin witnessed a price increase of over 15% and continues to target the $35,000 level after a minor pullback.
