Spot Bitcoin ETF Approval Prospects Increase in the U.S.
Following a recent judgment in favor of Grayscale against the US Securities and Exchange Commission (SEC), there’s rising optimism about the potential approval of the U.S.’s first spot Bitcoin ETF. Bloomberg analysts, Eric Balchunas and James Seyffart, suggest that the odds for such approval have been boosted. Post the court’s decision on August 29, 2023, to allow Grayscale to transform its Bitcoin Trust (GBTC) into a spot Bitcoin ETF, Balchunas raised the likelihood of a spot ETF being approved in 2023 to 75%. He mentioned in a tweet:
“After the unexpected unanimous ruling in Grayscale’s favor, our predictions have risen to a 75% chance for the launch of spot bitcoin ETFs this year, and a 95% probability by the end of 2024. The judgment leaves the SEC with minimal flexibility.”
The commentary indicates that the chance for the ETF approval extending to late 2024 is slim. This could coincide with a notable surge in Bitcoin’s price ahead of the anticipated Bitcoin Halving event set for Q2 2024. The analysts also implied that the SEC might find it challenging to keep rejecting spot ETF applications, with Balchunas saying, “The SEC might find it tough to continually deny such requests as they approach regulatory deadlines.”
The Race for Bitcoin ETF Intensifies Post Grayscale’s Victory
Following Grayscale’s win, major financial entities like Blackrock and Fidelity are eagerly pursuing the approval of the inaugural spot BTC ETF. This lawsuit’s outcome has amplified the crypto community’s confidence in the likelihood of the ETF getting the green light soon.